The Indonesian government has implemented various strategic measures to mitigate the impact of US President Donald Trump’s tariff policy, which takes effect on August 7, 2025. One key initiative is accelerating the completion of several trade agreements. Minister of Trade Budi Santoso stated that fast-tracking trade negotiations with multiple partner countries aims to broaden Indonesia’s export markets. Going forward, Indonesia will not only focus on traditional markets such as the United States, China, India, and Japan but will also target non-traditional markets including Africa and Latin America. This move is crucial as the US has imposed a 19% import tariff on Indonesian products. Moreover, the Ministry of Trade has set a national export growth target of 7.10%, with total exports reaching US$294.45 billion this year. In June 2025 alone, export values reached US$23.44 billion, an 11.29% increase compared to US$21.06 billion in the same month last year.

Cumulatively, Indonesia’s total exports in the first half of 2025 amounted to US$135.41 billion, up 7.7% from US$125.73 billion in the same period last year. Breaking it down, oil and gas exports totaled US$7.03 billion, down 11.04% from US$7.9 billion, while non-oil and gas exports rose by 8.96% from US$117.83 billion to US$128.39 billion.

Budi mentioned that at least five trade agreements are targeted for completion this year: the Indonesia–Canada Comprehensive Economic Partnership Agreement (ICA-CEPA), Indonesia–Peru Comprehensive Economic Partnership Agreement (IP-CEPA), Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU–CEPA), Indonesia–Eurasian Economic Union Free Trade Agreement (IEAEU-FTA), and Indonesia–Tunisia Preferential Trade Agreement (IT-PTA). The IP–CEPA is scheduled to be signed on August 11, 2025, coinciding with Peruvian President Dina Boluarte’s visit to Indonesia. The IEU–CEPA is also expected to be finalized in 2025 and is anticipated to significantly boost exports to the EU, a market of over 400 million people that already contributes Indonesia’s second-largest trade surplus of US$3.79 billion in the first half of 2025.

The government is also expediting the ICA–CEPA, expected to be signed by the end of 2025, as well as the IEAEU–FTA, with key points already agreed upon. The IT–PTA with Tunisia has been concluded and awaits formal signing. The EAEU is considered an important partner not only for non-traditional exports but also as a strategic trade hub in Eastern Europe and Central Asia.

The business sector has welcomed this acceleration. Indonesian Employers Association (Apindo) Chairperson Shinta W. Kamdani stated that trade agreements open broader export opportunities, particularly amid the US trade war. Apindo has formed working groups to optimize the agreements and has established communication with business actors in partner countries, including the EU, even though IEU–CEPA negotiations are still ongoing. Indonesian Chamber of Commerce and Industry (Kadin) Chairman Anindya Novyan Bakrie added that the IEU–CEPA could raise Indonesia–Europe trade to US$100 billion in the next 5–10 years, given that EU market needs—such as footwear, textiles, garments, electronics, and CPO—are similar to those of the US.

Anindya also noted that the agreements would facilitate access to raw materials like wheat, cotton, and soybeans at lower costs, while Indonesia would export finished goods. Paramadina University economist Wijayanto Samirin called the acceleration a smart move amid Trump’s unpredictable policies. However, he emphasized that the agreements will only be beneficial if product competitiveness and diversification are improved, to prevent the domestic market from being flooded with imports.