Authors: Deasy Pane|Siwage Dharma Negara

Published: 15 Dec 2025

Indonesia has its work cut out for it given tough headwinds in global trade, but the present government’s attempts to tack its sails may give the country a chance to move in the right direction.

More than one year into President Prabowo Subianto’s administration, Indonesia’s trade policy is navigating a tougher global environment. The US’ increasing use of tariffs, with frequent changes in rates and targets, has heightened uncertainty and created trade diversion, as China’s exports are redirected to other markets, including ASEAN. So far, official statistics show Indonesia’s exports rising by more than eight per cent year-on-year in the cumulative period from January to September 2025. Yet this short-term resilience, helped by frontloaded exports, raises the question of whether Indonesia can turn it into more durable trade competitiveness as uncertainties persist.

For full article, please open the link:

https://fulcrum.sg/rebalancing-indonesias-trade-policy-after-prabowos-first-year/

The article was published by ISEAS.

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The opinions expressed in this article are the author’s own and do not necessarily reflect the official policy, position or view of IRSEA