Indonesia to Maintain Good Trade Relations with Both US and China

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Minggu, 27 April 2025 - 12:03 WIB

Jakarta, VIVA – Deputy Minister of Trade, Dyah Roro Esti Widya, emphasized that Indonesia will continue to maintain its trade relationships with partners beyond the United States (US) amid the tariffs imposed by President Donald Trump. One of those key relationships is with China.

“We have close ties with China, which is also one of our biggest trading partners. Given that Indonesia is a non-aligned country, it’s important for us to maintain good relations with both the US and China," Widya said on Friday (Apr 25).

She acknowledged that maintaining good relations between two countries that are currently in conflict is not an easy task.

Therefore, Widya called for greater support and coordination across business sectors and associations.

Then, she stated that the current uncertain global situation also presents opportunities.

One such opportunity is expanding Indonesia’s trade markets, particularly in Africa, the Middle East, Australia, and South Korea.

“We see potential that we can tap into in those markets,” she explained.

Widya further mentioned that Indonesia currently has 21 trade agreements in place with partner countries, with 16 more agreements still under negotiation.

At present, the Ministry of Trade is focusing on three key trade agreements;

First, the trade agreement between Indonesia and Canada. Key Indonesian products with export potential to Canada include seafood and agricultural commodities.

“There are several top products we can promote, including halal-certified goods,” she said.

The second target is Peru. According to her, the substance of the Indonesia-Peru trade agreement is complete, but finalization is still in progress.

Indonesian products that could be exported to Peru include palm oil, rubber, pharmaceuticals, processed foods, textiles, and fashion items.

"Peru can serve as our entry point into Latin America, and it turns out to be a very promising market," she added.

The third focus is accelerating trade negotiations with the European Union.

The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU CEPA) has been in negotiation since 2016 and remains unfinished.

“Through this agreement, Indonesia could expand exports of furniture, textiles, and renewable energy technologies. We have a sustainable market opportunity in the European Union,” she concluded.