Jakarta. Indonesia is intensifying trade outreach to major partners such as the European Union and Australia in a bid to cushion the potential blow of declining exports to the United States, following steep tariff hikes imposed by President Donald Trump.

Coordinating Minister for Economic Affairs Airlangga Hartarto, currently in Washington for trade negotiations, emphasized the urgent need for Indonesia to diversify its export markets and reduce its dependence on the US.

“Roughly 10 percent of our total exports go to the United States. We are now opening communication with other trading partners, including the European Union. We hope to expedite the finalization of the EU-CEPA,” Airlangga said during a video conference with Indonesian journalists.

The Indonesia-EU Comprehensive Economic Partnership Agreement (EU-CEPA) has been under negotiation since July 2016. Indonesia currently enjoys a trade surplus with the EU, which reached nearly $4.5 billion in 2024, almost doubling from $2.5 billion the previous year. By comparison, Indonesia’s trade surplus with the US stood at around $18 billion in 2024.

Airlangga also cited progress with Australia, noting that the country had agreed to expand imports of Indonesian goods during his recent meeting with Australian Trade Minister Don Farrell.

Additionally, Indonesia has requested Australia’s support in gaining broader access to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), as Jakarta seeks to strengthen trade links with Mexico and other South American countries.

Government data shows that Indonesia-Mexico trade reached $2.6 billion in 2024, with Indonesia enjoying a $1.9 billion surplus. Indonesia has formally applied to join the CPTPP, following in the footsteps of four other ASEAN member states.

The CPTPP currently includes Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, the United Kingdom, and Vietnam.

These intensified diplomatic and trade engagements are part of Indonesia’s broader “mitigation efforts” to counter the effects of the US tariff hikes, Airlangga said.

Under President Trump’s sweeping trade measures, Indonesia faces a 32 percent export tax as part of broader tariffs targeting countries with which the US runs significant trade deficits.

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