With Donald Trump now confirmed as the U.S. president, Indonesia’s economy and diplomatic positioning will likely face significant shifts, reflecting both challenges and strategic opportunities. Trump’s prioritization of economic nationalism could reshape Indonesia’s trade and investment dynamics with the U.S., emphasizing bilateral agreements that may favour American interests. Targeted investments in sectors like energy could arise, especially in natural resources, though potentially under stricter conditions.
Diplomatically, Trump’s assertive stance on China places Indonesia in a sensitive balancing act, as it maintains strong ties with both global powers. Trump’s interest in alliances outside the U.S.-China framework might enhance Indonesia’s and Malaysia’s role within ASEAN, positioning it as a vital ally in Southeast Asia and adding leverage in regional security matters.
In manufacturing, Indonesia might feel initial challenges from Trump’s “America First” agenda, with potential trade restrictions on goods. However, U.S. companies may seek to diversify away from China, potentially bringing new investments to alternative regions such as Indonesia as a manufacturing base.
Trump’s policies, especially his support for fossil fuels, could also boost Indonesia’s coal exports. However, this may clash with Indonesia’s goals for green energy development, creating tension as Indonesia works to shift toward renewable energy sources. The U.S. may increase imports from countries like Indonesia, but these benefits could come with strings attached.
Global trade regulations will likely tilt toward protectionism under Trump, prompting Indonesia to explore alternative trade markets across Asia, Africa, and the Middle East. These adjustments may reduce Indonesia’s dependency on the U.S., diversifying its trade relationships in response to U.S. protectionist measures.
Altogether, Trump’s presidency presents Indonesia with a mix of opportunities and challenges. To navigate this complex terrain successfully, Indonesia will need to adopt proactive policies that align with its long-term economic and diplomatic interests, ensuring it can balance its relationships with both the U.S. and China while safeguarding national priorities.
Source: articles – The Perwakilan Post