Jakarta - Indonesian businesses are increasingly prepared to face global economic challenges, including the impact of protectionist tariff policies imposed by the United States (US), according to the Vice Chair for Macroeconomic and Microeconomic Policy Analysis of the Indonesian Chamber of Commerce and Industry (Kadin), Aviliani.

Speaking at a seminar titled “Trump’s Tariff Policy and Indonesia’s Strategic Path Forward” held at Perbanas Institute Jakarta on Tuesday (April 29, 2025), Aviliani—commonly known as Avi—emphasized the need for resilience and innovation.

“Indonesian entrepreneurs must view crises not merely as threats, but as momentum for innovation and enhancing competitiveness,” Avi said in her presentation.

Avi, who is also a lecturer at the Perbanas School of Economics (STIE), highlighted the importance of collaboration between academia, business actors, and government in crafting long-term strategies to navigate an increasingly complex global economy.

“A close partnership between academia, the private sector, and the government is essential for creating sustainable plans,” she added.

In response to the reciprocal tariff policies from the US, Avi noted that the Indonesian government has formed a joint committee involving key stakeholders from government bodies, academic institutions, and the business community.

This initiative aims to identify trade barriers and promote deregulation to strengthen investment and national exports.

“Fiscal and non-fiscal incentives—such as interest subsidies and tax breaks—have proven effective in helping businesses not just survive, but grow,” Avi explained.

She also stressed the importance of industry research conducted by academic institutions to support data-driven, market-relevant business strategies.

Avi noted that, amid a decline in multilateral cooperation and a rise in bilateralism, entrepreneurs must leverage trade agreements such as RCEP (Regional Comprehensive Economic Partnership), TIFA (Trade and Investment Framework Agreement), EU-CEPA (European Union Comprehensive Economic Partnership Agreement), Turkey CEPA.

“Diversifying products and exploring non-traditional markets are strategic steps to reduce overdependence on the US and China,” she said.

Digitalization and technology adoption, according to Avi, are also key to driving efficiency and market expansion.

“Entrepreneurs must stay attuned to technological trends and evolving consumer demands to remain relevant and competitive,” she urged.

Avi further highlighted the need for cross-sector synergy to address global uncertainties—not only in finance and energy, but also stemming from geopolitical tensions and demographic transitions.

With a growing productive-age population, she said Indonesia has a significant opportunity to develop a strong domestic market.

“Active economic diplomacy, policy reforms, and sustained research are the three pillars essential to building a competitive business environment,” Avi stated.

She concluded by calling on all business actors to continue innovating and collaborating.

“Now is the time for Indonesian businesses to move forward with smart strategies, continuous innovation, and a strong spirit of cooperation. If we work together with the government and academic institutions, we can turn global challenges into opportunities for business growth and national economic advancement,” she affirmed.

The event was jointly organized by Kadin Indonesia, Perbanas Institute, Kampus Merdeka, and the Indonesian Economic Scholars Association (ISEI). Other speakers included Hermanto Siregar, Rector of Perbanas Institute, Olvy Andrianita, Head of the Center for International Trade Policy, Ministry of Trade, Arif Wibisono, Senior Advisor for Financial Services & Capital Markets, Ministry of Finance, Tifa Noer Amelia, Academic, Perbanas Institute, Ian Syarif Tan, Vice Chair, Indonesian Textile Association (API), Sahara, Director of ITAPS, FEM IPB University, Dyah Nirmalawati, Academic, Perbanas Institute.