Indonesia Maintains Trade Neutrality Amid US-China Tensions

Indonesia has reiterated its commitment to maintaining balanced and neutral relations amid the escalating US-China trade conflict, refusing to take sides or retaliate against either nation’s tariff policies. Indonesian officials emphasized the country's adherence to fair, rules-based multilateral trade and its intent to resolve disputes through diplomacy and negotiation rather than retaliation. Jakarta continues to trade with both the US and China, its largest trading partners, and upholds transparent trade practices while opposing protectionism. Amid warnings from Beijing not to enter deals with the US at China's expense, Indonesia has asserted its independent approach and diplomatic flexibility. The government has also underscored its economic resilience, reporting stable fiscal performance and prudent budget management despite global trade tensions. Analysts note that Indonesia’s diplomatic strategy and new communication channels with Beijing bolster its bargaining position and could allow it to play a mediator role between the US and China.