Minister Explains Why Indonesia Chooses Diplomacy Over Trade War with Trump

1 week ago 5

TEMPO.CO, Jakarta - Coordinating Minister for Food Affairs Zulkifli Hasan, also known as Zulhas, emphasized that the Indonesian government will not respond with retaliation to the import tariff policy introduced by the United States President Donald Trump.

Instead, he stated that Indonesia would prioritize diplomacy and negotiation.

"As for retaliating, we don't do that. We engage in diplomatic discussions because we see that we need each other," Zulhas said at the Coordinating Ministry for Food Security office in Central Jakarta, on Tuesday, April 8, 2025.

He mentioned that there are various options for Indonesia regarding Trump's tariff policy. He cited the import of several commodities from the U.S.

"We have many options, actually. For example, we import a large amount of oil, a large amount of wheat, and we also import soybeans. I think they can be discussed and negotiated," he said.

Zulhas added that he had coordinated with Coordinating Minister for Economic Affairs Airlangga Hartarto concerning a joint negotiation strategy with the U.S. government. Airlangga is expected to travel to U.S. soon to engage in the talks.

"It's necessary to engage in immediate trade diplomacy or negotiations. I heard that Mr. Menko (Coordinating Minister Airlangga Hartarto) will leave for U.S., maybe in a day or two. I think his diplomacy will resolve everything," he said.

The Indonesian government had earlier officially decided against taking retaliatory action, instead advocating for a unified agreement with ASEAN member states. President Prabowo Subianto appointed Airlangga Hartarto to lead the negotiation and cooperation efforts with the U.S.

"ASEAN will prioritize negotiations. So, ASEAN will not resort to retaliatory measures," Airlangga said following a meeting with ministry officials and business representatives at his office on Monday, April 7, 2025.

The reciprocal tariffs from the U.S. are scheduled to take effect on April 9, 2025. According to Airlangga, the U.S. government is currently awaiting a formal negotiation proposal from Indonesia before the tariffs are officially implemented.

At the same time, the Indonesian government is pushing for agreements with several ASEAN countries.

Airlangga has also met with Malaysia's Prime Minister Anwar Ibrahim, and the two countries agreed to use the Trade and Investment Framework Agreement (TIFA). The minister for economic affairs has also communicated with the Prime Minister of Singapore, Cambodia, and other ASEAN countries to coordinate their stance.

Almost all ASEAN countries, he said, have decided not to retaliate. For example, Vietnam has even reduced all its tariffs to zero.

Malaysia will also take the negotiation path. Likewise, Cambodia and Thailand. "We are taking the same path, the negotiation path. So, we align our paths, we align our TIFA mechanisms," he said.

Ilona Estherina contributed to the writing of this article.

Editor's Choice: Understanding Import Tariffs, Reasons for Imposing Them and Their Drawbacks

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