Indonesia affirms neutrality in U.S.-China trade war, chooses diplomacy path

  • Published on 23/04/2025 GMT+7

  • Reading time 2 minutes

  • Author: Renold Rinaldi

  • Editor: Imanuddin Razak

The government has affirmed its commitment to maintaining balanced trade relations with all international partners, including the United States and China. 

Indonesia’s position was conveyed by the Ministry of Trade in response to the Chinese government's warning regarding economic agreements between partner countries and the US.

Director General of International Trade Negotiations at the Ministry of Trade, Djatmiko Bris Witjaksono, said that Indonesia will continue to adhere to the principles of fair and mutually respectful multilateral trade.

"Regarding the Chinese government, I think Indonesia and China also uphold the principles of multilateral trade. We respect each other's rights and obligations," Djatmiko told the media on Monday, April 21, 2025.

He added that Indonesia will not take retaliatory action against U.S. tariff policies or pressure from any party. He emphasized that any trade issues that arise will be resolved through diplomacy and negotiation.

This statement came after a stern warning from the Chinese government asking partner countries not to enter into economic agreements that were considered detrimental to Beijing's interests.

The spokesperson for the Chinese Ministry of Commerce even warned that any party that bowed to U.S. pressure and made an agreement that sacrificed China's interests would face a strong reaction.

"Giving in does not bring peace, and compromise does not earn respect," the spokesperson was quoted as saying by CNN International, on Monday, April 21, 2025.

Tensions increased after U.S. President Donald J. Trump on April 9, 2025, announced a policy of suspending import tariffs for most countries for 90 days, with the aim of pressuring China in the trade conflict.

Washington is known to have raised import tariffs on goods from China by up to 145 percent, and called on its trading partners to limit the operations of Chinese companies and stem the flow of Chinese industrial goods into their economies.

This policy has raised concerns from a number of developing countries, including Indonesia, which depend on the stability of global trade. Although pressure from the world's two major economic powers has increased, Indonesia has stated that it will continue to strive to maintain balance and not get caught up in geopolitical trade conflicts.

"Indonesia will maintain trade continuity with partners as best as possible," Djatmiko said.

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