Jakarta. Indonesia should take advantage of the US-China tariff war truce, according to an analyst.

The United States and China recently announced a 90-day truce in their escalating trade war. The US agreed to slash its 145 percent tariff rate on Chinese goods by 115 percentage points to 30 percent. China has said yes to cutting its import tax on American goods by the same amount to 10 percent.

Syafruddin Karimi, an economist at Andalas University, said that the truce could give Indonesia a chance to increase its exports. To this end, Jakarta should position itself as a strategic trading partner by not taking sides. The 90-day pause can also give Indonesia time to diversify its export destinations, improve logistics efficiency, and build a healthier investment climate.

"It is time for us to stand up on our own feet. Don't wait until the next crisis for us to change," Syafruddin said.

"What matters is for Indonesia to not just become a spectator in the global dynamics," he added.

According to Syafruddin, an export-based economy is no longer relevant in a world that is witnessing high geopolitical risks. This should prompt Indonesia to bolster its domestic market. The economist said that the 90-day truce should also prompt Indonesia to take an active role in regional groupings, including the ASEAN. Jakarta should also support a multilateral trading system that is backed by the World Trade Organization (WTO) to make sure developing economies are not put at a disadvantage.

Like many other countries, Indonesia has been given a three-month pause on Washington's reciprocal tariffs since April. Indonesia was supposed to face a reciprocal tariff of 32 percent -- in addition to the baseline 10 percent tariff -- if it wished to sell its goods to the American market, but the import tax hikes were postponed until early July. The government is currently negotiating the tariffs with US President Donald Trump's team.

China and the US are both Indonesia's key trading partners.

Indonesia-US trade totaled nearly $38.3 billion in 2024, government data showed. Indonesia's trade with China amounted to almost $135.2 billion in the same year.

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