Indonesia to use trade to build peace amid global fragmentation

Jakarta (ANTARA) - Indonesia is committed to utilizing trade as an instrument for supporting peace and prosperity amidst rising geopolitical fragmentation, protectionism, and a global economic slowdown.

"Trade must be a bridge that strengthens cooperation between nations, not an arena for confrontation," Deputy Minister of Trade Dyah Roro Esti Widya Putri said at the 10th Jakarta Geopolitical Forum, organized by the National Resilience Institute (Lemhannas) in Jakarta.

She noted that the world is undergoing a major transformation where trade is closely linked to national security, technological mastery, industrial policy, and geopolitical influence.

Such a situation has led to the increased use of tariffs, export restrictions, economic sanctions, and various strategic trade instruments that impact the global supply chain, Roro Esti added.

Amidst these challenges, the deputy minister emphasized that Jakarta is choosing open economic diplomacy, rather than retreating into economic isolationism.

Indonesia's strategy focuses on diversifying export markets, expanding trade partnerships, strengthening national industrial competitiveness, downstreaming, digital transformation, and building resilient supply chains.

"Resilience does not mean isolation. Resilience is the ability to remain open, adaptive, and a trusted trading partner," she remarked.

As a rising middle power, Indonesia is using its diplomatic leverage to advocate for systemic reforms within major global financial and trade institutions.

This includes pushing for reforms within the World Trade Organization (WTO) to restore its dispute resolution mechanism, update digital trade rules, and safeguard special treatment for developing countries.

Indonesia is also advocating for reforms in global economic governance through the International Monetary Fund (IMF) and the World Bank to better reflect the growing role of developing nations in the global economy.

Indonesia is aggressively expanding its footprint across major multilateral tables—including ASEAN, the G20, APEC, BRICS, the OECD, and the WTO.

To date, Jakarta has secured 20 active trade agreements covering more than 60 percent of its total national commerce.

Roro Esti also highlighted Indonesia's victory in resolving various international trade challenges through constructive dialogue and diplomacy, pointing to the successful exemption of 18 different export categories from heavy US tariffs during Washington's strict Section 301 investigation.

"Constructive dialogue, supported by strong data and a pragmatic approach, has proven to produce more effective solutions than confrontation," she said, adding that trust will remain the main foundation of global trade in the future.

Moving forward, the deputy minister emphasized that the government cannot navigate these geopolitical headwinds alone.

Indonesia is utilizing a "pentahelix" approach—a collaborative framework uniting the government, business sector, academia, civil society, and the media to present a unified front in global economic diplomacy.

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Translator: Kelik Dewanto, Yashinta Difa

Editor: Rahmad Nasution

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