Sleman. The global economy is moving increasingly toward protectionism as major powers prioritize domestic interests, posing a growing threat to Indonesia's export competitiveness unless the country responds early, former Trade Minister Enggartiasto Lukita said.

Enggartiasto said geopolitical tensions have reshaped international trade, with major economies increasingly resorting to trade barriers and other measures designed to protect domestic industries.

"What we are seeing now is a shift toward overprotectionism. The problem is that not every country recognizes this change early enough, leaving them late in anticipating its impact," Enggartiasto said during a discussion organized by Ruang Literasi Kaliurang in Sleman, Yogyakarta.

His remarks come as the United States under President Donald Trump pursues its "America First" agenda, using tariffs and import restrictions in an effort to reduce its trade deficit and protect domestic industries. Other major economies, including the European Union and China, have also adopted measures to shield strategic sectors from foreign competition.

Enggartiasto recalled facing similar pressure during his tenure as trade minister under President Joko Widodo, when Indonesia risked losing its preferential access to the US market under the Generalized System of Preferences (GSP) during Trump's first administration.

At the time, Washington was reviewing Indonesia's GSP eligibility amid concerns over its sizable trade surplus with the US. Losing the preferential treatment could have subjected a range of Indonesian exports to higher tariffs, making them less competitive in the American market.

"If the GSP facility had been revoked and our tariffs were brought in line with those imposed on developed countries, the impact would have been severe. Indonesia could have lost billions of dollars in exports because our products would have become more expensive and less competitive," he said.

Enggartiasto said he responded by coordinating government ministries, businesses, state-owned enterprises and the Indonesian Embassy in Washington to develop a trade diplomacy strategy.

Indonesian importers buying US products were encouraged to prepare long-term purchasing commitments as part of efforts to demonstrate a more balanced economic relationship between the two countries.

"I asked all importers to bring memorandums of understanding for purchases of American products. If they were unwilling, I told them the government would seek alternatives through state-owned companies. When national interests are at stake, there can be no compromise," he said.

Enggartiasto, who is now executive chairman of B-Universe Media Holdings, said the experience demonstrated that trade policy must ultimately be guided by national interests rather than personal or business considerations.

"I know many of the parties personally, but when it comes to the interests of the country, all of that must be put aside. Protecting the national interest comes first," he said.

He also pointed to the conflict between the United States and Iran as another source of instability for the global economy, saying geopolitical tensions have driven up prices for oil and petrochemical feedstocks, with knock-on effects on fuel, LPG, plastic packaging and other products.

Willy Aditya, founder of Ruang Literasi, said Enggartiasto's experience offered lessons for policymakers as Indonesia navigates an increasingly uncertain global economic environment.

He said the discussion highlighted three priorities: reducing Indonesia's dependence on imported energy, maintaining a clear separation between national and private interests in policymaking, and adopting more forward-looking economic policies informed by international experience.

"This forum is not merely an intellectual discussion. It is about turning the real-world experience of a former policymaker into lessons that can strengthen Indonesia's economic resilience in facing global geopolitical dynamics," Willy said.

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