Facing Trump's Tariff Policy, Prabowo Mentions Potential for Domestic Markets and New Markets (1)

While conversing with several media leaders at his private residence in Padepokan Garudayaksa, Hambalang, Bogor Regency, on Sunday (6/4/2025), President Prabowo Subianto addressed various issues, including the reciprocal tariff policy implemented by U.S. President Donald Trump and measures to anticipate shocks in the capital market. The following excerpt will be the first of three articles resulting from the interview with the President.

How to solve Trump's tariff policy problem?

Later, we may experience severe impacts, particularly affecting industries such as textiles, footwear, garments, and furniture. This is significant because these industries are labor-intensive.

But we will find a way out, we must dare to find new markets. We are too spoiled, you know. We have been attracted to the American economy. Right? Because this is the economic system that America taught us.

Free market, globalization, there are no borders. They taught us. We are loyal students. We follow what they teach us, all the time. The 60s, the 70s, the 80s, the 90s, 98, 99, we followed. The most loyal, the most faithful. Now we have to wake up, we have to grow up. And not only us, Europe, ASEAN countries, all, Australia, all!

Oh, in that case, the situation has changed now. And indeed, the situation has changed. That is what I have been warning about for years. Please, please review my digital records, my track record. I have already warned, "Ladies and gentlemen, Indonesia must stand on its own feet." But people say, "Oh, rhetoric."

No (rhetorical), I have been fighting for it, I have realized, I have understood that one day, nobody is going to help us, except ourselves. And this is the reality. Nobody is going to help India, nobody is going to help Vietnam, no. Every country has to take care of itself.

But many people also say that America is forcing all countries to seek other options. Canada has already stated—you read, you hear the speech of the Prime Minister of Canada—"If America does not want to lead, Canada will lead."

Imagine Canada later with Western Europe (leading the way). I will also depart for Europe in early May. I will meet the Prime Minister (of Malaysia) Anwar (Ibrahim) later (Sunday) afternoon. We will coordinate.

Yesterday, the Coordinating Minister for Economic Affairs, Mr. Airlangga, was in Kuala Lumpur for coordination. Later, ASEAN ministers will also coordinate. We continue to maintain relations and negotiations. I will send Mr. Airlangga to Washington. We already have contacts with prominent figures in Washington. We will hold discussions. We will negotiate.

But, one thing I want to convey. America actually has the right because it wants to defend its national interests. Imagine other countries having a surplus of 300 billion US dollars, 200 billion US dollars, 100 billion US dollars. Isn't that correct? We are among those with a relatively small surplus, 18 billion US dollars.

But, I also mean, our entrepreneurs must also - in other words - have long-term planning and not depend on one good market. We must be brave.

Why don't we go to Africa? Africa is the new emerging market of the world. The population is large. The resources are abundant. The needs are numerous.

There are our entrepreneurs who dare to go to Africa. Salim Group, they are everywhere in Africa. Their hobby now is eating Indomie. And they think Indomie is their food. It is in Nigeria, in Turkey, in Egypt. So we have to look for new markets.

What we are concerned about is only garments, shoes. Our (population) is 300 million people, you know, soon, we will be as big as America. So, later we will just sell the shoes among ourselves. Clothes, we have maybe 75 million school children. They need shoes. They need clothes; sports clothes, scout clothes.

I have to meet with industry figures later. We talk, we find a way out and we try to mitigate the difficulties that will arise (due to the US reciprocal tariff policy). And, these difficulties will affect the whole world.

How to ensure Trump's tariff policy does not shake the Indonesian economy?

But this, yeah, what's happening now? Shifting. People are looking for friends, looking for friends. We are also confused actually. But in a sense, we understand that they are concerned that their economy is not productive. They (America) still dominate technology. But in another field, the automotive field. They have been able to lose far perhaps to China.

Yeah, right? Electronics, phones. Yeah, right? Who uses American phones now, maybe? Apple still does. Their technology is still superior. So, there will be a new equilibrium, right?

I myself am also very concerned. But, yes, this is a fact that the whole world is facing. I just believe that our basic is strong. Whatever happens, I think we will survive. Whatever (crises) we have survived. Many times crises. (Year) '68, '98, 2008. (The crisis due to) Covid, yes, we face it. And we can overcome it.

But the key is if there is harmony. So I am also concerned. I also want a dialogue. I want to meet with whoever. Let's discuss.

What steps will the government take to ensure that the market is relatively calm when it opens after the holidays?

The stock market is influenced by market mechanisms. Sometimes it goes up, sometimes it goes down. There is a cycle and it goes on. People who enter the stock market, they are looking for profit as quickly as possible. This is if we differentiate it from direct investment.

If (the person who invests directly) has a plan, "I will build a factory for these raw materials; raw materials bauxite, nickel, coal. This is the raw material, this is the factory, this is the distribution, marketing, this is my profit in five years, 10 years, 30 years". So we differentiate.

If I look at our fundamentals, they are strong. Whatever happens in the stock market, we have the strength and we will invest.

People always talk when the stock market falls. When the stock market goes up, people are quiet, right? When it went down a few days ago, (people said) the Indonesian economy was chaotic, dark, failed. When it went up again a few days later, it was quiet, no one commented.

Now the stock market in America is down a lot, but (US President) Trump's view is, "Oh no, it's down, but in time it will go up again." Because he is doing things that he thinks are strengthening the American economy.

This is my answer about the capital market. So, that's why, I'm not too afraid of the capital market. Because Indonesia has strength. That's what we realize.

We should not have a sense of inferiority. We seem to be programmed, our nation, our elites too, that we are weak, we are defeated, we are colonized. (In fact), we are great, great, great!

Well, our (country) has a big debt. Our debt compared to many countries, our debt is one of the smallest in the world in comparison. Only four, five countries (whose debt) is smaller than ours, right?

Our inflation is the lowest in the world. People want to learn how Indonesia controls inflation. You see Turkey's inflation is 44 percent. It's already great. (Inflation) It's down from 85 percent. Argentina 117 percent, (inflation) it's down, don't know (maybe from) 300 percent.

So we should not be too afraid. That this world is not okay, we are full of difficulties, frankly we correct ourselves, yes. As a nation, during the past 30 years we have made many blunders, let's admit it.

Don't get it wrong who the president is. How can one president be responsible for everything? There are many blunders. And this is also wrong, I also (said), "Hey, technocrats, hey professors, hey professors, why didn't you correct it? Why didn't you remind me when there were deviations? When there were blunders?"