Indonesia Studies Trump’s Trade Strategies as He Begins second Term
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JAKARTA, Indonesia – Bank Indonesia Governor Perry Warjiyo recently suggested that Indonesia could benefit from studying President Donald Trump’s trade policies as the president embarks on his second term. Trump’s re-election in 2024 has brought renewed focus to his protectionist trade approach.
Warjiyo highlighted the notable tariffs imposed by the U.S. on various countries, especially those with substantial trade surpluses, including China, Canada, Mexico, Europe, and Vietnam.He noted that tariffs on Chinese goods,for example,are at least 25 percent.
“We need to learn from this. Even though Indonesia’s trade surplus with the U.S. is not very large, we must understand how to establish agreements with the US,” Warjiyo stated during a seminar titled “Spurring Growth Towards an Advanced Indonesia” held on December 14, 2024.
Balanced Trade,Not Import Reduction
Warjiyo emphasized that Indonesia shouldn’t necessarily reduce imports from the U.S. or retaliate with high tariffs. Instead, he proposed a strategy of increasing imports while simultaneously boosting exports to achieve a balanced trade relationship.
“For example, if the surplus is IDR 1 billion, it should be reciprocal—IDR 1 billion each,” he explained, referring to the Indonesian Rupiah.
He argued that a balanced trade, even with a small surplus, wouldn’t be detrimental as long as Indonesian exports remain robust. This approach, he believes, could significantly contribute to Indonesia’s economic growth.
“That’s the tactic. This is what we need to do,” he added.
Trump’s economic Agenda: A Second Term Focus
With President Trump’s inauguration for a second term set for January 20, 2025, Warjiyo acknowledged the president’s commitment to his “America First” economic policies. These policies, characterized by high tariffs and stringent immigration controls, aim to bolster the U.S. economy.
“Trump’s motto is ‘America First,’” Warjiyo observed. “His priority is America. Provided that it leads to high economic growth for the US, he’ll pursue it.”
Beyond tariffs, Warjiyo also noted Trump’s plans for stricter immigration enforcement, including the deportation of undocumented foreign workers.This policy, according to Warjiyo, is intended to prioritize job opportunities for American citizens.
The Indonesian government’s keen observation of Trump’s economic strategies underscores the global impact of U.S. trade policies and the need for other nations to adapt and strategize accordingly.
By RIRI RAHAYU
Indonesia Looks to Trump’s Tariffs for Trade Strategy Ideas
JAKARTA, Indonesia – With President Donald Trump embarking on his second term, his trade policies, particularly his use of tariffs, are receiving close scrutiny from nations around the world.One such country is Indonesia, which has begun actively studying the potential benefits and challenges of Trump’s “America First” approach.
A Conversation with Trade Expert Dr. Ayu Ningsih
Senior Editor: Welcome, Dr. Ningsih. As a specialist in international trade relations, you’ve been closely following the developments surrounding President Trump’s trade policies. Could you shed some light on Indonesia’s perspective?
Dr. Ayu Ningsih: Thank you for having me.Indeed, Indonesia is keenly aware of the global impact of President Trump’s approach to trade, especially his preference for imposing tariffs. There’s a growing recognition within the Indonesian government that understanding these policies is crucial for formulating effective trade strategies moving forward.
Understanding the “America First” Approach
SE: What specific aspects of Trump’s trade agenda have sparked Indonesia’s interest?
AN: The most noticeable thing has been the use of tariffs as a primary tool. We’ve seen meaningful tariffs imposed on goods from China,of course,but also from Canada,Mexico,Europe,and even vietnam.Indonesia, while not facing tariffs on the same scale, is nonetheless impacted by this shift towards protectionism. We have to adapt.
Balanced Trade as a Strategic Goal
SE: How is Indonesia planning to adapt? Bank Indonesia Governor Perry Warjiyo recently suggested a strategy of balancing trade rather than reducing imports from the US. Can you elaborate on this?
AN: That’s right. Governor Warjiyo has emphasized the need to find a balance. We can’t ignore the fact that the US is a major trading partner. Rather than cutting back on imports or engaging in retaliatory tariffs, the aim is to increase our exports while also importing more from the US. The ideal scenario is a trade relationship where both countries benefit.
Decoding “America First” for Indonesia’s Future
SE: How do you see Indonesia achieving this balanced trade relationship in light of President Trump’s stated commitment to “America First” policies?
AN: Understanding the “America First” approach is crucial. It’s not just about tariffs. It’s about prioritizing American jobs and domestic industries. indonesia has to find ways to show that our trade relationship contributes to those goals. That requires proactive communication,identifying areas where our economies complement each other,and perhaps even exploring joint ventures.
SE: Dr. Ningsih, this has been incredibly insightful. Thank you for sharing your expertise on this crucial topic.
AN: My pleasure. It’s a complex and evolving situation that requires close attention from all parties involved.
