Trade War Tensions Is A Catalyst for Innovation: James Riady
JAKARTA, investortrust.id – James Riady, Vice Chairman for International Affairs at the Indonesian Chamber of Commerce and Industry, or Kadin, addressed concerns over the escalating U.S. trade war, emphasizing that such disruptions should be seen as opportunities rather than threats. Instead of fearing global economic uncertainty, he urged Indonesian businesses to focus on innovation and strategic breakthroughs.
"These upheavals are not entirely negative. They serve as reminders that every so often, we need to make breakthroughs," Riady said after attending a Kadin Indonesia breakfast meeting at Hotel Aryaduta, Jakarta, on Friday, Feb. 14, 2025.
The Lippo Group executive advised local businesses, particularly those within Kadin, not to be overly concerned about the trade policies introduced by U.S. President Donald Trump. While acknowledging the potential economic turbulence, he suggested that such global shifts could inspire new ideas and strategies for business resilience.
Embracing Change Amid Global Uncertainty
For Riady, economic volatility presents both challenges and opportunities. He urged Indonesian entrepreneurs to not only be adaptable but also to identify emerging prospects within global disruptions. He stressed that the ability to respond effectively to shifting market conditions would shape Indonesia's identity as a competitive economic force.
"The way we respond to global disruptions defines Indonesia. A nation that can adjust and transform itself in response to global changes will emerge stronger," he said.
His remarks followed Trump’s announcement on Thursday, Feb. 13, 2025, detailing plans to impose "reciprocal tariffs" on foreign nations.
Trump’s New Trade Policies and Their Implications
In a press conference at the Oval Office, Trump declared that the U.S. would impose tariffs on nations that tax American goods.
"If they impose taxes or tariffs on us, we will do the same to them," Trump stated, as reported by CNBC.
Under this plan, the U.S. would classify foreign non-tariff barriers, including value-added taxes (VAT), as unfair trade practices subject to countermeasures. Additionally, Trump stated that foreign goods would no longer be allowed entry into the U.S. via third-party countries to bypass trade restrictions.
This policy shift could impact Indonesia and other emerging markets, especially in sectors reliant on global trade. Still, Riady remains optimistic, asserting that Indonesian businesses must leverage such developments to explore new markets and reinforce their global positioning.