Jakarta - Amidst global uncertainty triggered by trade wars and international economic volatility, Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Novyan Bakrie, has expressed confidence in Indonesia’s readiness to compete on the global stage.

Speaking during the HSBC Summit 2025 panel discussion themed "Reimagining Indonesia’s Global Competitiveness" at The Ritz Carlton SCBD, Jakarta, on Tuesday (April 22, 2025), Anindya—often referred to as Anin—emphasized the importance of calmness, policy consistency, and a comprehensive, sustainable economic strategy.

“I believe we are very ready to compete globally. We must stay calm, stick with the plan, and enjoy the ride,” Anin remarked.

He noted that the impact of the ongoing trade tariffs between the United States and other nations has been overstated in the media, particularly regarding its effect on Indonesia.

“If we look at the data, the impact of the U.S. trade war is not as significant as portrayed in the media,” he stated.

Nonetheless, Anin underlined the importance of proactive strategic policy and international cooperation. Kadin Indonesia is scheduled to visit the United States soon to continue negotiations on relocating $40 billion worth of oil and gas imports, aimed at offsetting Indonesia’s $18 billion trade surplus with the U.S.

“In about a week, Kadin will head to the U.S. to follow up on well-advanced negotiations between the U.S. and Indonesian governments. Essentially, we are looking for what I’d call a sparring partner,” Anin explained.

“If we can relocate $40 billion of U.S. oil and gas imports, it could help balance the $18 billion trade surplus. Once this is achieved, tariff levels should normalize, potentially increasing by just 10%, and that opens up great opportunities for our exports—particularly in electronics, footwear, and apparel,” he added.

Strengthening Domestic Economy

Anin stressed that strengthening the domestic economy is critical to national resilience and growth. With domestic consumption contributing 55–60% of Indonesia’s GDP, he argued the country is structurally resilient. However, risks remain.

“Domestic consumption makes up 55–60% of our GDP, which gives us strong resilience. But this consumption must be developed further. While the trade war impact may only be 9–10%, about 2.1 million workers are at risk. That’s a big number. To maintain 5–6% annual growth, we need to generate 2–3 million new jobs. Losing 2 million would be a serious hit,” he cautioned.

He also praised government programs like Free Nutritious Meals (MBG), Free Health Checkups (PKG), and Decent Housing Initiatives as crucial to boosting domestic consumption and economic inclusion.

Anin further highlighted the strategic value of Indonesian migrant workers (PMI) abroad.

“We have around 5 million migrant workers—most of them are domestic workers. These workers contribute nearly IDR 250 trillion (approx. $15 billion) to the economy. If we can shift toward more skilled labor exports, the potential for increasing foreign reserves is huge,” he said.

Export Market Expansion

In addition to strengthening domestic consumption, Anin stressed the importance of expanding and diversifying export markets. He cited Kadin’s involvement in presidential visits to Turkey, Qatar, India, and Brazil as part of this strategy.

“In Qatar, they’ve committed $2 billion, matched by $2 billion from Indonesia, to establish a sub-fund. This could have a snowball effect,” Anin noted.

In agriculture and fisheries, Indonesia is also learning from India and Vietnam, particularly in lobster farming.

He cited East Nusa Tenggara (NTT) as a high-potential region, where a mismatch between consumption (IDR 59 trillion) and production (IDR 7 trillion) represents a clear opportunity for economic development.

“If we can make even one province self-sufficient, the impact is huge. I’m convinced NTT has a bright future in fisheries,” he said.

Toward a Global Food Hub

According to Anin, sustainable food-based development offers greater long-term value than relying on finite natural resources through downstream mineral processing.

“With over 5% growth, low inflation, and $150 billion in reserves, we are in a much better position than people think,” he said.

“Now is the time to carefully and selectively invest—particularly in sectors that enhance domestic consumption and unlock new export markets.”

He concluded by sharing his vision for Indonesia to become a global food hub. Transforming agriculture, livestock, and fisheries through AI, big data, and digital technologies can make this a reality.

“This is about more than food self-sufficiency—it’s about becoming a global food hub. The government is spending around IDR 70 trillion plus IDR 171 trillion (about $12 billion) through the MBG program. That means daily demand for 80 million eggs, 80 million drumsticks, and more. Behind that is a massive opportunity for downstreaming—rice, corn, chili production,” Anin elaborated.

“Agriculture today is very different from what we saw during the early independence or New Order eras. Now we have modern agriculture powered by AI, digital tech, and quantum computing. That’s why we must think beyond the downstreaming of critical minerals. Those will eventually deplete, but food and agriculture are inherently sustainable. In short: modern agriculture is the key to making Indonesia the global food hub," Anin added.