NEGOTIATING WITH WASHINGTON
The tariffs imposed by Trump encourage Indonesia to reevaluate its economic strategy, focusing on diversifying its partnerships and collaborations. These initiatives enhance the nation’s “free and active” foreign policy, allowing Indonesia to remain neutral among major powers while still asserting its influence in regional matters.
Firstly, the tariffs present a chance to strengthen the bond between the US and Indonesia. Despite the leaders not meeting thus far, Mr. Prabowo reached out to Mr. Trump to congratulate him on his victory, with both exchanging friendly remarks.
The US continues to be a significant security and economic ally for Indonesia. In 2023, both countries upgraded their relationship to a “comprehensive strategic partnership”, committing to enhance the stability and prosperity of the Indo-Pacific region.
This agreement was made during the leadership of their predecessors, Joko Widodo and Joe Biden. As Indonesia negotiates trade with the US, it should reaffirm this partnership and discuss its future trajectory. Doing so emphasizes Indonesia as a trustworthy partner for the US in Southeast Asia and reinforces Washington’s commitment to the region.
Additionally, it would be beneficial for Indonesia and the US to explore new trade opportunities, particularly in critical minerals, where Indonesia plays a significant production role.
