Indonesia’s vision to strengthen its domestic industry by opening access to the U.S. market is not just a dream. President Prabowo has personally met with Donald Trump to discuss a strategic trade collaboration. The meeting resulted in a promising trade deal, especially for increasing Indonesia’s exports to the United States.
But this agreement cannot remain on paper. All relevant ministries must move quickly to draft supporting regulations that will turn this vision into real progress.
A Golden Opportunity for Local Industry
The trade agreement offers clear advantages. One of the biggest benefits is the reduction or elimination of U.S. import tariffs on Indonesian products. This means Indonesian goods will be more competitive in the U.S. market compared to goods from countries like China, which are still subject to tariffs of up to 19%.
This makes Indonesia a more attractive production base for foreign investors. Products can be manufactured in Indonesia and exported to the U.S. with low or even zero tariffs in some sectors.
Shared Responsibility
The public must also play a role by improving the quality of local products to meet American standards. At the same time, efforts to upskill the workforce are crucial so that more people can be absorbed into industry.
To maintain a balance between productivity and social welfare, the government should also provide subsidies for basic needs like rice, oil, electricity, and fuel. This would help reduce the cost of living so that industries don’t need to raise wages drastically while workers’ well-being is still protected.
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The Hidden Risk
Alongside these opportunities lie significant risks. If not carefully anticipated, this trade deal could backfire. One major concern is the potential flood of cheap American products into Indonesia, which could crush small and medium local businesses.
Even more worrying is Donald Trump’s statement that America should gain “full access” to Indonesia’s natural resources. Without clear legal safeguards, this could lead to mass-scale exploitation. Indonesia must act fast to pass laws that limit resource extraction and protect the environment. We must not let our natural wealth be depleted before we even feel the true benefits of this deal.
Time to Act Fast
This trade agreement can bring real change — but only if accompanied by the right policies. The government must move quickly to revise export-import regulations, improve taxation systems, and create labor rules that are friendly to industrial growth.
This is a golden chance to reduce unemployment and poverty. But without structural readiness and strong oversight, it could end up doing more harm than good.
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