Indonesia must take strong action in response to the United States’ imposition of a 32% import tariff on Indonesian goods, including calling on the World Trade Organisation (WTO) to reform the global trade system, according to Said Abdullah, Head of the House of Representatives’ Budget Committee (Banggar).
Abdullah said the WTO was originally established to promote non-discriminatory trade, strengthen global trade capacity, encourage free trade, and serve as a platform for resolving international trade disputes, as reported by Indonesia’s Antara news agency.
He cautioned that economic policies should not be used by dominant nations to gain unilateral advantages, warning that such practices could threaten global economic stability and lead to depression. Instead, policies must serve broader, universal economic interests, he asserted.
Alongside international efforts, Abdullah urged the Indonesian government to bolster the resilience of its domestic economy. He stressed the importance of identifying and expanding into alternative export markets to sustain the national trade surplus.
He also called on the government to enforce Government Regulation No. 8 of 2025, which mandates that all foreign exchange earnings from natural resource exports be deposited in domestic banks—an important step in strengthening Indonesia’s financial system.
To reduce dependence on the US dollar, Abdullah recommended expanding bilateral currency swap agreements with key trading partners, thereby enhancing financial independence.
On the fiscal front, he advocated for counter-cyclical policies to support businesses amid global economic uncertainty without jeopardising fiscal stability.
Regarding investment, Abdullah highlighted the need to improve the infrastructure and policies surrounding Indonesia’s stock and financial markets. He said creating a more inclusive and efficient investment ecosystem is essential to maintaining Indonesia’s appeal to global investors.
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