Jakarta. President Prabowo Subianto’s Davos debut gave the world a picture of where Indonesia is heading in trade: Southeast Asia’s biggest economy seeks a “win-win” relationship in its pursuit of new markets.

Prabowo addressed the annual World Economic Forum (WEF) gathering in Davos on Thursday afternoon local time. This marks the first time for an Indonesian leader to come up on the Davos stage since 2011, during which Former President Susilo Bambang Yudhoyono proposed some solutions to global economic problems.

After half an hour of boasting about Indonesia’s domestic accomplishments, Prabowo finally talked of the country’s position in global trade. He started by saying that Indonesia “does not fear economic integration”, as the country has been a “trading nation for hundreds of years”, alluding to its spice trade history. 

“We conclude now trade agreements, not because it is fashionable, but we consider it necessary. We believe in the concept of win-win,” Prabowo said.

He listed the trade accords that Indonesia had inked or substantially concluded throughout 2025, including those with the European Union, Peru, Canada, and the Russia-led Eurasian Economic Union. These documents require lawmakers’ approval before the tariff eliminations on traded goods can kick in. Prabowo, who had just visited London, revealed that Indonesia would have a comprehensive economic partnership agreement with the UK next year. Trade pacts of such nature typically grant major tariff eliminations, thereby possibly bringing down prices of Indonesian goods when sold in foreign markets.

“This is part of our strategy to deepen productivity, reduce barriers, and unlock private sector growth for Indonesia, ASEAN, and the Global South,” Prabowo told the high-profile forum.

“We believe that trade integration, when done fairly, is not a threat to sovereignty. We believe trade is a tool for prosperity.”

But throughout his 40-minute speech, Prabowo did not say the term that had largely reshaped the global trade over the past year: “tariffs” or, in particular, “US tariffs”. Prabowo did kick off his Davos remarks by saying how the world leaders had gathered in the ski resort “at a time of great uncertainty”. 

Prabowo had just signed a Gaza peace board document right next to Trump about a few hours before addressing the Davos crowd, marking Jakarta’s official membership in the organization that will focus on rebuilding Gaza. 

The Davos forum had seen world leaders, including French President Emmanuel Macron and Canadian Prime Minister Mark Carney, making remarks aimed at Trump’s tariff salvo. In Trump’s Davos speech, the American businessman-turned-politician defended his decision on the tariff hikes, saying that countries “have to pay for the damage that they have caused”, referring to Washington’s ballooning trade deficit.

On the trade front, Indonesia is in the final stage of a deal negotiation with the US. Indonesian goods are now facing 19% tariffs, down from the 32% rate that Trump had originally threatened back in April. Chief negotiator Airlangga Hartarto has claimed Washington already agreed to grant a tariff-free treatment for Indonesian palm oil, and repeatedly stated that Jakarta sought a mutually beneficial accord. 

But the deal has sparked concerns over its fairness as the framework document of the terms sees Jakarta making major concessions. Indonesia is letting American goods enter its market at zero tariff, on top of multibillion-dollar import pledges. Economist Yose Rizal Damuri said that the agreement was “far from reciprocal” as US-bound key manufacturing exports like footwear and textiles remain subject to 19% import tax.  

Indonesia enjoyed an overall trade surplus for 67 consecutive months in November since May 2020, the national statistics agency reported.

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