Indonesia Rules Out Retaliation on Trump Tariffs, Pursues Diplomacy

Indonesia has decided not to retaliate against the 32% trade tariffs announced by President Donald Trump, focusing instead on diplomacy and negotiations to seek mutually beneficial solutions. Chief Economic Minister Airlangga Hartarto emphasized that this approach aims to maintain the long-term interests of bilateral trade relations and national economic stability. The Indonesian government plans to gather business input to formulate strategies to mitigate the tariff's effects and will also explore increasing trade with European countries as alternatives to the US and China. Hartarto noted that the tariffs would significantly impact sectors like apparel and footwear, which are crucial to Indonesia's economy. Furthermore, Indonesia plans to send a high-level delegation to the US for direct negotiations. In 2024, Indonesia recorded a trade surplus of $16.8 billion with the US, with key exports including electronics and footwear.