"Its effect on Indonesia's GDP will be potentially positive as it may increase our GDP percentage point by 0.8 percent," he informed at the Indonesia Economic Summit (IES) 2025 here on Tuesday.
However, to achieve the increase, Indonesia must tap opportunities from global market relocations and increase foreign investment realization by ensuring ease of business, he said.
The agency head further highlighted the greater potential for GDP increase when domestic businesses diversify their export markets to more partner countries.
Meanwhile, despite President Trump intensifying protectionist policies, Indonesia-US relations remain stable, Pandjaitan affirmed.
"President (Prabowo) has also developed a good rapport with President Trump, and he is preparing a letter for President Trump to discuss potentials for bolstering bilateral collaboration," the DEN head added.
He also highlighted various challenges faced by Indonesia in its efforts to bolster its economy, including global food resilience, digital disruption and artificial intelligence, climate change, economic competitions, and geopolitical dynamics.
The Ministry of Investment and Downstreaming earlier reaffirmed its readiness to adjust its policies to mitigate the tariff policies imposed by the United States that may affect Indonesia.
Investment minister Rosan Roeslani said that mitigation is necessary to maintain the nation's economic competitiveness.
US President Donald Trump on February 1, 2025, imposed a 25-percent tariff on all imported steel and aluminum commodities.
He additionally levied a 25-percent tariff on all imported products from Canada and Mexico, and products from China were slapped with a 10-percent tariff.
In a tit-for-tat move, China imposed an additional 15-percent tariff on coal and liquid natural gas (LNG) products from the US. Meanwhile, Canada negotiated a 30-day delay to the tariff, which the US agreed to.
Related news: Ready to anticipate impact of US tariff policy, govt says
Related news: Indonesia prepared for potential impacts of USAID closure: MoFA
Translator: Ahmad Muzdaffar F, Nabil Ihsan
Editor: Rahmad Nasution
Copyright © ANTARA 2025
