Donald Trump’s victory in the 2024 U.S. election signals a new era that could have a significant impact on Indonesia and the world. There are many aspects we need to understand, from economic impacts to security policies in Southeast Asia. As an important trade partner for both the U.S. and China, Indonesia must be prepared for various possible scenarios.
Impact of Trade Policies on Indonesia’s Economy
Trump is known for his protective approach toward the U.S. economy, particularly with higher import tariffs on China. If he continues to tighten these policies, global supply chains could be disrupted. Indonesia, as a country that relies on international trade, might see significant changes in raw material prices and export market access.
Indonesia’s Position in Southeast Asia’s Security Dynamics
Trump’s previous administration showed a strong interest in maintaining stability in Southeast Asia, particularly in the South China Sea. In this context, the U.S. will likely seek support from Southeast Asian countries, including Indonesia, to help uphold regional balance.
Indonesia, with its non-aligned foreign policy principles, faces the challenge of remaining neutral while safeguarding maritime security and domestic stability. There are opportunities for Indonesia to strengthen defense cooperation, but it’s essential to maintain independence in decision-making.
A More Transactional Diplomacy, Challenges for Indonesia’s Foreign Policy
Trump is well-known for his transactional style of diplomacy, which means the U.S. might push partner nations to align more closely with its interests. For Indonesia, this could mean increased pressure to take sides or respond to shifting dynamics, especially in its relations with China.
As a country that prioritizes sovereignty and non-aligned principles, Indonesia needs to be prudent. While Indonesia doesn’t have to choose sides, it must be prepared for situations where these two superpowers may seek more support.
New Economic and Investment Opportunities for Indonesia
Amid rising tensions between the U.S. and China, Indonesia can attract more investment, particularly from companies looking to shift their operations from China. Indonesia could become an attractive destination for global investors by securing a business-friendly and stable investment environment.
This is not only about attracting foreign investment but also about creating more jobs and strengthening the export sector, which would positively impact the community’s welfare.
