Indonesia must abandon its outdated and fragmented approach to international trade negotiations if it hopes to secure significant tariff reductions from the United States, according to Achmad Nur Hidayat, an economist and public policy expert at the National Development Veteran University Jakarta.

Despite months of ongoing talks, Indonesia has failed to persuade Washington to lift the punitive tariffs imposed under Section 301 of the U.S. Trade Act during Donald Trump's presidency. In contrast, countries like China have successfully negotiated tariff reductions by offering comprehensive, strategic trade packages.

“Trade negotiations are like a game of chess, not hopscotch,” Achmad said as quoted in a statement on Friday, July 11, 2025. “Indonesia needs to stop jumping between sectors with no coherent plan. Our strategy must be integrated, data-driven, and led by credible professionals with a singular national focus.”

Achmad criticized Indonesia’s current negotiation efforts as weak, reactive, and overly reliant on moral appeals rather than strategic offers. He pointed out that China secured tariff concessions through its "Phase One" deal by leveraging its massive export volume − over US$500 billion to the U.S. − and offering targeted purchases of American goods, particularly in the tech sector.

Indonesia, by contrast, exports only around US$20–30 billion to the U.S., limiting its leverage. Moreover, its negotiation team is fragmented across multiple ministries, lacking coordination and strategic depth. “The Ministry of Trade focuses on market access, the Investment Coordinating Board (BKPM) chases investment, and the Coordinating Ministry often adds complexity rather than clarity,” Achmad said.

He also noted the absence of a definitive ambassador to the U.S. and criticized the continued reliance on senior ministers like Airlangga Hartarto and Sri Mulyani, claiming their political baggage and track records have hampered negotiations.

“You can't win a global negotiation with failed domestic tacticians,” he added.

Achmad called for a new national negotiation team operating directly under the President, with a single chain of command. This team should present the U.S. with an attractive package deal − including commitments to purchase American technology, offer investment relocation in EV battery production, and partnerships in green industrial zones.

He stressed the importance of basing negotiations on granular industrial data: “Indonesia must understand its export elasticity, substitution potential, and tariff impacts on employment and GDP. Without data, we’re negotiating blindfolded.”

Achmad also urged Indonesia to frame its economic engagement within broader geopolitical narratives. As global players look to reduce dependence on China, Indonesia can position itself as a strategic alternative in global supply chains, particularly in critical sectors like nickel processing and battery manufacturing.

“Trade talks are wars without bullets,” he concluded. “Only those with a solid strategy, strong data, and firm leadership will win. It’s time Indonesia stopped begging for tariff discounts and started bargaining like a serious global player.”

The call for a new strategy comes as trade tensions remain unresolved and Indonesia risks losing out on key economic opportunities unless it can step up its game on the global negotiation stage.

U.S. President Donald Trump on Monday, July 7,2025 announced sweeping new import tariffs targeting several countries in Asia and Africa. The new measures, part of a reciprocal tariff strategy launched on April 2, 2025, include a base tariff of 10 percent on nearly all imports, with additional country-specific tariffs.

Indonesia faces one of the steepest rates, set at 32 percent, while Japan, South Korea, Malaysia, and Kazakhstan will each face a 25 percent tariff. South Africa is subject to 30 percent, and Myanmar and Laos to 40 percent.

The announcement has sparked concern over potential global economic slowdown and recession risks in vulnerable economies. Trump defended the move as essential for bringing manufacturing back to the U.S. and funding the new round of tax cuts signed last week. He emphasized, however, that he remains open to negotiations − suggesting continued uncertainty in U.S. trade policy.