Bogor, West Java. Former Indonesian President Susilo Bambang Yudhoyono (SBY) has warned that the trade war sparked by US President Donald Trump will inevitably impact Indonesia’s economy and called on the government to prepare strategic responses to shield the country from global volatility.

Speaking from his residence in Puri Cikeas, Bogor, on Tuesday evening, SBY said the effects of the escalating US tariff regime --whether direct or indirect-- could ripple through Indonesia’s trade-dependent economy.

"There will certainly be consequences for Indonesia. The tariff war initiated by President Trump will hit us too," SBY said after receiving a delegation from B-Universe Media Holdings, led by Executive Chairman Enggartiasto Lukita.

The meeting covered a wide array of pressing global issues, from economic instability and geopolitical conflict to the intensifying trade barriers. Among the key concerns was Washington’s recent hike in import tariffs, a move that threatens to choke exports from countries like Indonesia.

SBY stressed the urgency for the Prabowo administration to prepare contingency plans, suggesting the country could mitigate risks through proactive diplomacy and regional coordination. “If the situation becomes a crisis, it might also become an opportunity for our economy,” he said, advocating for negotiations with the US and collaboration with ASEAN leaders to seek collective solutions, similar to recent diplomatic efforts by President Prabowo Subianto.

SBY is no stranger to economic turmoil, having steered Indonesia through the global financial crisis of 2008.

Enggartiasto said SBY’s experience is being revisited as a blueprint for managing today’s turbulent economic landscape. “He emphasized repeatedly that we must fully support the government and remain united,” Enggartiasto said.

SBY outlined three key pillars for a national response: maintaining calm in financial markets, harmonizing fiscal and monetary policy, and ensuring clear government communication through the media to prevent misinformation and panic.

“Unity is essential,” SBY added, adding that global uncertainty, especially from superpower conflicts like the US–China trade war, has real-world implications for emerging economies. “We all care about this country. We want our economy to remain stable. God willing, we will find the right solutions.”

A proposed 32 percent reciprocal tariff on Indonesian exports by the US could shave up to 0.5 percentage points off Indonesia’s GDP growth this year if implemented, according to DBS Group Research.

The World Bank, in its Indonesia Economic Prospects report released in October 2024, forecasted Indonesia’s GDP growth to average 5.1 percent annually between 2024 and 2026, despite challenges such as declining commodity prices, rising volatility in food and energy prices, and geopolitical uncertainties.

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