IPMI Discussion Forum: Implications of the US–China Trade War on Indonesia’s Economic Resilience – IPMI Institute Highlights Indonesia’s Strategic Role Amid Global Trade Tensions

by Rizqi Trisakti Sultan

Jakarta, Thursday, 17 April 2025

IPMI Institute hosted a thought-provoking panel discussion titled “Implications of the US–China Trade War on Indonesia’s Economic Resilience” on Thursday, 17 April 2025, from 15:00 to 17:00 WIB at IPMI Puridani Campus. The 90–120 minute event brought together experts from business, government, and academia to analyze the strategic implications of escalating US–China trade tensions on Indonesia’s economy and U.S.-based businesses operating within the country.

This event was a timely response to the heightened trade conflict between the United States and China, which saw a surge in mutual tariffs and regulatory restrictions in early 2025. While global headlines have centered on the macroeconomic impact, IPMI’s panel focused on a critical but under explored question: how do these global dynamics affect U.S. companies embedded in Indonesia’s economy?

Key Objectives and Discussion Points
The panel aimed to unpack the short-, medium-, and long-term effects of the trade war, examining how American investors in Indonesia are adjusting their operations amid shifting geopolitical currents. Panelists also explored Indonesia’s growing relevance within the “China Plus One” strategy where companies seek alternative hubs to reduce dependency on China.

Highlights of the discussion included:
● The relative insolation of Indonesia from direct U.S. tariffs, as outlined in the April 2025 AmCham Indonesia Update.
● Opportunities arising for Indonesian exporters due to supply chain realignments, supported by insights from Snapcart Global.
● Sectoral breakdowns of U.S. investment in Indonesia from the AmCham Investment Report 2024.
● The urgent need for clearer legal frameworks and risk mitigation strategies in response to geopolitical fragmentation.

Distinguished Panelists and Format
The panel featured:
● Chairperson of AMCHAM Indonesia
● A senior trade policy analyst from CSIS
● A government representative from the Coordinating Ministry for Economic Affairs
● Moderator: Faculty Representative from IPMI International Business School, with expertise in global political economy and international business strategy

The event followed a structured format, beginning with opening remarks, followed by individual presentations, a moderated discussion, and an interactive Q&A session. The dialogue highlighted the pressing need for robust business-government collaboration to reinforce Indonesia’s positioning as a resilient investment destination amidst global uncertainty.

Participants and Engagement
The discussion attracted strong interest from relatives, stakeholders and public with a total of 100 participants attending onsite at IPMI Campus and 60 participants joining online via Zoom, reflecting the relevance and urgency of the topic across stakeholder groups.

Event Outcomes
The session produced actionable insights and laid the groundwork for a potential policy note summarizing the findings. Attendees—including academics, industry professionals, and students-left with a deeper understanding of Indonesia’s strategic advantage and the tactical measures necessary to navigate the evolving global trade environment.