The Government of Indonesia is seeking to broaden its export market focus to counter the impact of reciprocal tariffs by the United States of America (USA). In this context, Jakarta is looking for new markets both in the BRICS market and in the countries covered by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). At an online press conference on the progress of Indonesia-US trade negotiations, Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto said: “Indonesia has just joined the BRICS and has applied to join the CPTPP. We expect this to open up new markets such as the UK, Mexico and other Latin American countries,” he said. He also explained that this market expansion is in line with efforts to finalize various strategic trade agreements such as the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).[1]
Indonesia’s goal of joining the CPTPP after BRICS is very important for the country’s integration process into the global economy. This is expected to increase exports, access to new markets and encourage foreign investments. Gaining access to Latin American markets will enable Indonesia to play a more active role in global supply chains and increase export diversification. While Indonesia already maintains access to Latin American markets through agreements such as the Indonesia-Chile Comprehensive Economic Partnership Agreement (IC-CEPA) or the Indonesia-Peru Comprehensive Economic Partnership Agreement (IP-CEPA), membership in the CPTPP will enable it to build deeper economic ties with countries in the region. Moreover, the strategy to access markets in the region is in line with Indonesia’s comprehensive, long-term and strategic Vision 2045 goals, from e-commerce to renewable energy.
The RPJPN Vision 2025-2045, launched in October 2024, lays the foundation for a more socially inclusive, environmentally sustainable, economically resilient, and internationally integrated development approach to translate the aspirations of Golden Indonesia 2045 into action and address the next generation of challenges. The inauguration of the new government is an opportunity to evaluate Indonesia’s economic development, assess the risks and challenges facing the country, and explore its outlook for the future.[2]
Thus, Indonesia’s access to Latin American markets will not only increase exports in the short term, but also provide many opportunities for economic growth, sectoral diversification, and access to global supply chains in the long term. This strategic move, in line with the Vision 2045, will help the country to play a more active role and strengthen its position in the global economy.
The new dimension of economic competition in the world with the tariffs imposed by US President Donald Trump will pose an obstacle to the country’s growth targets, even though the tariffs against Indonesia are currently suspended for a period of 90 days. In this situation, Indonesia will try to minimize risks and seize opportunities as much as possible. In this context, Indonesia’s top economic minister and chief negotiator stated on Friday 25 April 2025 that Indonesia, which wants a “fair and equal” trade relationship with the United States, is prioritizing its national interests in the ongoing negotiations on US tariffs. Indonesian Head of Delegation Airlangga Hartarto and Finance Minister Sri Mulyani Indrawati have been in Washington for some time, with the main agenda items being the 32% tariffs that the US wants to impose on Indonesia.[3]
In response to these developments, the Central Bank of Indonesia fixed the policy rate at 5.75% in order to reduce the impact of trade tensions. Therefore, stabilisation and capital outflow were aimed to be prevented. Indonesia is developing multifaceted strategies in order not to be adversely affected by the US tariffs and to maintain its economic development in a stable manner in accordance with the 2045 Vision. With these strategies, it will be able to take more balanced steps in foreign trade by taking various measures such as economic reforms and monetary policies. Consequently, it will be able to minimize the negative effects of tensions in global trade and maintain its long-term development plans in a stable manner.
To conclude, Indonesia has drawn a roadmap for the future within the scope of Vision 2045, which was initiated in line with the goal of becoming one of the five largest economies in the world. However, external factors that change global economic dynamics, such as tariffs imposed by the United States, cause some obstacles in the road map to be followed. In order to cope with this situation, Indonesia has been negotiating with the US and continues its search for balance in foreign trade.
Moreover, Indonesia is also planning reforms such as green energy transformation and digital infrastructure investments towards Vision 2045. Thus, while becoming stronger in the economic field, it will be able to play an active role in global supply chains. Through strategies pursued in accordance with its commitment to its long-term development goals, Indonesia endeavours to maintain its determination without being affected by the economic obstacles created or likely to be created by external factors. Particularly, joining large trade blocs such as the CPTTP and gaining access to new markets is important for Indonesia to balance the risks that Indonesia will face and diversify its trade.
[1] “Indonesia targets BRICS, CPTPP nations for export expansion”, ANTARA News, https://en.antaranews.com/news/352897/indonesia-targets-brics-cptpp-nations-for-export-expansion, (Date of Access: 27.04.2025).
[2] “The Yellow Brick Road to Golden Indonesia 2045: Advice for the New Government”, Asia Pathways ADBI Institute, https://www.asiapathways-adbi.org/2024/10/the-yellow-brick-road-to-golden-indonesia-2045-advice-for-the-new-government/, (Date of Access: 27.04.2025).
[3] “Indonesia wants ‘fair and square’ trade in US tariff talks”, Reuters, https://www.reuters.com/markets/asia/indonesia-is-putting-forward-national-interest-us-tariffs-negotiation-minister-2025-04-25/, (Date of Access: 27.04.2025).
