Turning Global Turmoil Into National Opportunity

 

 

 

By Teguh Anantawikrama,

Chairman of the Indonesian Tourism Investors Club

 

 

 

 

 

INVESTORTRUST.ID - The world is once again entering turbulent waters. With the re-election of President Donald Trump and the introduction of what many call “Trump Tariff 2.0,” the global trade landscape is being redefined. Tariffs have returned as a political weapon, and emerging markets are once again being tested for their resilience.

 

In this volatile context, Indonesia stands out not just as a survivor—but as a strategist.

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Amid rising uncertainty, we see a nation that is not retreating, not retaliating, but reforming. We see a government that is using this crisis as a window for deregulation, market rebalancing, and industrial rejuvenation. As Chairman of the Indonesian Tourism Investors Club, and someone committed to advancing sustainable economic growth, I believe Indonesia’s current posture deserves international attention—and national appreciation.

 

 

Indonesia’s 2024 economic growth reached 5.03%, supported by solid domestic consumption, positive performance across all sectors, and continued surplus in trade. Our manufacturing PMI remains in expansionary territory, and inflation is under control, even after the lifting of temporary electricity subsidies.

 

These fundamentals give Indonesia the credibility it needs at a time when many economies are on shaky ground. For example:

• The Euro Area faces projected growth as low as 0.8–1.2%, grappling with structural rigidity.

• The United States, while still expanding, now risks financial isolation due to aggressive trade policies.

• Even Vietnam, often seen as ASEAN’s manufacturing darling, is vulnerable due to overexposure to the U.S. market (33% of gross domestic product in exports to the U.S., vs. Indonesia’s 2.2%).

 

We are not just standing on stable ground—we are standing in a better position to pivot.

 

 

Indonesia has been one of the few emerging economies to resist the temptation of retaliation. Rather than impose counter-tariffs, Indonesia is choosing to strengthen its trade and investment ties with the United States through negotiation under the Trade and Investment Framework Agreement (TIFA) framework.

 

This is not weakness—it is wisdom.

 

The government is offering a strategic package: increased imports from the U.S. (soybeans, wheat and energy), deregulation of non-tariff barriers (including for American tech players), and sectoral incentives to maintain export competitiveness. This is how a mature economy behaves in a fragmented world—by de-risking its relationships and deepening mutual benefit.

 

 

The shift in global supply chains also opens a door for Indonesia. With U.S. tariffs on apparel and footwear from Vietnam and Cambodia now at punitive levels, Indonesia’s 32% rate—though still high—is significantly more favorable. If we can match our regional peers in market share, Indonesia could generate an additional USD 6.4 billion in exports and create thousands of new jobs in labor-intensive sectors.

 

But beyond textiles and manufacturing, there is another industry Indonesia must harness: tourism.

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As Chairman of the Indonesian Tourism Investors Club, I’ve long advocated for tourism to be seen not merely as a leisure sector, but as a strategic engine of national resilience.

• It is high impact, low carbon, and highly inclusive.

• It spreads income across regions, not just sectors.

• And in the face of global protectionism, it is one of the few sectors that remains borderless in spirit and opportunity.

 

Tourism must be embedded into Indonesia’s national economic response, with the same seriousness given to trade and industry. In an age where tariffs define goods, experiences remain tariff-free.

 

 

Indonesia’s approach to the U.S. tariffs also aligns with its leadership role in ASEAN. The region maintains a massive USD 239.9 billion surplus with the U.S., yet countries like Vietnam are far more exposed. Indonesia, by comparison, has the strategic flexibility to rebalance without risking domestic instability.

 

Moreover, Indonesia’s international strategy is rapidly expanding. Our participation in  Regional Comprehensive Economic Partnership (RCEP), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) accession, Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), and BRICS+ dialogue shows a country ready to operate in multiple global frameworks. No longer are we just a passive trading partner—we are now a regional pivot, with global leverage.

 

Indonesia’s response to the current wave of tariffs sends a clear message: We will not be cornered into confrontation, nor paralyzed by protectionism. Instead, we will reform.

 

This is a national moment not only to protect what we have but to build what we need:

• A more agile regulatory system

• A more competitive industrial base

• A more inclusive economic model

• And a more resilient global identity

 

I believe Indonesia’s example should resonate far beyond our borders. In a time when the world is raising walls, we are building bridges—to markets, to reforms, and to a stronger future.