After U.S. Tariffs, Indonesia Seeks Closer Ties with BRICS Nations

Indonesia is looking to strengthen trade relations with the BRICS economic bloc—Brazil, Russia, India, China, and South Africa—following the recent imposition of high import tariffs by the United States. These tariffs are additional taxes applied to imported goods, making them more expensive in the U.S. market. The strategy aims to mitigate the negative impact of these tariffs while opening new revenue opportunities.

Hans Kwee, an economist and financial market expert, argues that boosting trade with BRICS could shield Indonesia from significant economic losses, particularly in its trade balance—the difference between exports and imports. The goal is to prevent a decline in the country’s trade surplus, a situation where exports exceed imports, generating profits for the nation.

The Impact of U.S. Tariffs on Indonesia’s Economy

Recently, U.S. President Donald Trump announced broad and retaliatory tariffs on multiple countries, including Indonesia. These measures include a general 10% tax on imports, with additional tariffs reaching up to 32% for Indonesian goods.

Hans Kwee warns that these tariffs will negatively impact Indonesia’s economy, primarily by reducing exports. A drop in exports could shrink the country’s trade surplus, hinder economic growth, and increase the risk of currency depreciation—weakening the Indonesian rupiah against the U.S. dollar.

The Benefits of Strengthening BRICS Trade Relations

Deepening trade ties with BRICS nations is a promising strategic move. These emerging economies boast large consumer markets and the capacity to absorb Indonesian exports, reducing dependence on the U.S. market.

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Furthermore, BRICS has shown increasing interest in fostering internal trade, creating new opportunities for Indonesia to expand its global economic influence. Diversifying trade partners helps mitigate economic risks associated with over-reliance on a single market like the United States.

Indonesia’s Next Steps in Global Trade

Experts recommend that Indonesia ramp up diplomatic efforts and trade negotiations to secure favorable conditions with BRICS nations. Key sectors such as infrastructure, technology, and renewable energy are seen as particularly promising for future collaborations.