Jakarta. Senior economic minister Airlangga Hartarto told a conference on Wednesday that Indonesia's economy remained robust and the country continued to actively engage in economic diplomacy.

Speaking at a forum at Gadjah Mada University, Airlangga said that Indonesia had kept its inflation in check and a surplus for 70 consecutive months. The average Indonesian consumer also remains optimistic. Meanwhile, the financial sector continues to demonstrate solid performance, reflected in the growth of bank deposits and steady credit expansion.

"Our poverty rate has dropped to 8.25%. Our Gini ratio has decreased, and our unemployment has also decreased. And job creation through 2025 is projected to generate 2.71 million new workers," Airlangga said.

During President Prabowo Subianto's administration, Indonesia continued to expand through various agreements, including the free trade agreements with the European Union (EU) and the Eurasian Economic Union (EAEU). Indonesia is also part of the world's largest trade deal, RCEP, and assumed memberships in BRICS, G20, and ASEAN. It is now pursuing a seat at the OECD and CPTPP.

Airlangga went on to say that the tariff negotiations with the US have also opened up opportunities to increase labor-intensive industrial exports and create jobs.

The government also continues to strengthen Indonesia's bilateral economic cooperation with various partner countries. Several agreements have been successfully concluded, including with Japan, Pakistan, Palestine, Chile, Australia, Mozambique, Korea, Iran, Peru, Canada, and Tunisia.

Several other negotiations are ongoing, including with Mercosur, the Gulf region, as well as Pakistan, Bangladesh, Sri Lanka, Morocco, Turkey, and Uzbekistan.

The US is Indonesia's biggest surplus contributor and one of its largest export markets.

"The US mainly imports Indonesia's manufactured goods. Some of our exports include palm oil, electronics, shoes, textiles, furniture, and others. That's what differentiates the US from other countries," Airlangga said.

Jakarta also engaged in intense US tariff negotiations between April 2025 and early 2026. The talks resulted in tariff adjustments from the earlier threatened 32% to 19%. Indonesia also secured tariff exemptions for 1,819 selected products.

This policy provides protection and a strong boost to domestic labor-intensive industries, which employ approximately 5 million workers. Bilateral economic cooperation with the US has been strengthened in various strategic sectors, including food, industry, energy, and technology, and has encouraged stronger cooperation in the digital economy, economic security, and the resolution of non-tariff barriers.

Airlangga went on to explain that Indonesia has a strategic and high-profile position internationally. Indonesia's active role in promoting stability, peace, and international cooperation has strengthened Indonesia's leadership position internationally.

In various global forums, Indonesia is viewed as an influential and credible partner, often a priority in dialogues and strategic negotiations.

"This may make it easier for us to complete all negotiations. If Indonesia isn't high-profile, it won't be a priority. With the US, for example, Indonesia's surplus is at $20 billion. But Indonesia remains a priority [in the negotiations]," Airlangga said.

The US Supreme Court's ruling did not invalidate the agreement with Indonesia, as the agreement's clauses complied with the legal processes in each country. However, with the US Supreme Court's ruling, the US government now requires additional legal basis beyond Article 122 of the US Trade Act, thus launching Section 301 probes against Indonesia over excess capacity and imports made by forced labor.

Indonesia has prepared a response to be submitted on April 15. This process will continue until consultations with the US Trade Representative's office on May 12.

The minister said that the government had engaged various stakeholders in the negotiation process, while reporting each stage of the talks to the public via mass media as a form of transparency.

He wrapped up his remarks by saying that President Prabowo Subianto's various priority programs are designed to provide direct benefits to the community, particularly low-income groups. This includes the free meal program and Red-and-White-Cooperatives program.

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