Reporter
Ilona Estherina
April 14, 2025 | 10:22 am
TEMPO.CO, Jakarta - Deputy Chairperson of the National Economic Council (DEN) Mari Elka Pangestu suggested that the Indonesian government should also engage in dialogue with China in response to the import tariffs imposed by the United States. The government decided to negotiate after President Donald Trump announced the reciprocal 32 percent tariff on products from Indonesia.
''We need to engage in diplomacy not only with the U.S., but also with China,'' she said during a discussion session held by The Yudhoyono Institute in Jakarta on Sunday, April 13, 2025.
The former Minister of Trade during President Susilo Bambang Yudhoyono's era said that Indonesia must negotiate with China because the country is countering the U.S. with retaliatory tariffs, and it will also build relations with ASEAN countries.
She said the government needs to emphasize that Indonesia is not taking retaliatory measures but is negotiating. Mari added that Indonesia requires managing the risks after implementing these varying tariffs. This is because there might be a trade diversion. Exports that were originally sold to the U.S. will shift to other markets. If not anticipated properly, there will be an influx of imports. ''And indeed, most of it is from China. This also needs to be managed with China,'' she said.
Strengthening cooperation with ASEAN is also necessary. According to Mari, ASEAN must prioritize trade reforms and strengthen the domestic economic engine.
President Donald Trump announced that the implementation of reciprocal tariffs is postponed for 90 days. Mari said that this period could be an opportunity for Indonesia to approach the U.S. It can also seek new partners, expand markets between countries, engage in dialogue with trading partners, and expand the Regional Comprehensive Economic Partnership (RCEP).
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