Jakarta. Indonesia and Uganda are eyeing each other’s markets as US President Donald Trump’s sweeping tariffs send countries around the world to diversify trade.

Ugandan State Minister for Trade Wilson Mbasu Mbadi is currently in Indonesia at a time when the world had its eyes glued to Trump’s tariff whiplash. A 10 percent tariff is now in place for all foreign goods entering the US, including those from Indonesia and Uganda. Indonesia, however, will face steep tariffs at 32 percent starting August unless Jakarta manages to clinch a deal with the Trump government. 

During his Jakarta visit, Wilson Mbadi kicked off a bilateral business conference with Indonesia’s Deputy Trade Minister Dyah Roro Esti in attendance. In her opening remarks, Dyah Roro said that the world was going through “very challenging times with the current geopolitical situation”, alluding to Trump’s tariffs.

“In regard to the US tariffs, this is something that not only Indonesia is facing, but also the whole world. Our relationship with Uganda or the African region extends way beyond the tariffs. This has always been a market and an area of interest to us," Dyah Roro said, responding to a question from the Jakarta Globe whether Indonesia saw Uganda as a non-traditional market that it would like to explore more following Trump’s latest trade move.

“We have pinpointed that may be of interest to Uganda and vice versa,” she said, adding that Indonesia’s existing exports to the East African country include stainless steel, vegetable oil, and glass.

Mbadi was more frank with Uganda’s intentions, admitting that the tariffs were one of the factors that had sparked Kampala's interests in Jakarta.

"Tariffs are still everywhere. This is one of the biggest reasons why we have to look for alternative markets," he said, pointing out how countries must not let the hikes affect their economies and people.

Indonesia-Uganda trade totaled $55.4 million in 2024, with the Southeast Asian country running a $44.3 million deficit, official government statistics showed. Data revealed that bilateral trade had been on a drastic rise this year. In the first five months of 2025, trade already hit $72 million, already surpassing 2024 numbers. Cocoa, hides, and skins are among the leading Ugandan exports to Indonesia.

When Trump first unveiled his tariff policy in April, senior minister Airlangga Hartarto included trade diversification as part of Indonesia's strategies to respond to the looming import tax hikes. Airlangga said at the time the US only made up 17 percent of global trade, while the rest came from other parts of the world. He added: “Mr. President Prabowo Subianto has instructed us to tap into that 83 percent global trade.”

Is It Also Because of BRICS?
The forum took place just a few days after the BRICS Summit in Rio de Janeiro -- a meeting that had also ruffled Trump’s feathers.

It was the first time for Indonesia to make its debut at the group’s high-level talks since becoming a member early this year. The Rio summit also welcomed Uganda as one of its new partner countries. Ugandan Vice President Jessica Alupo also came to the conference to represent Kampala. 

“Our relationship with Indonesia started very many years ago, before BRICS. So, BRICS cannot be the reason that we are here," Mbadi told the Globe. "We are here because we need to cause socio-economic transformation … that can only happen through job creation,” Mbadi said, pointing out how greater trade and investment can boost employment.

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