Luhut: US-China Trade War Creates Opportunities for Indonesia

The Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, highlighted the opportunities Indonesia can seize from the ongoing trade war between the United States (US) and China. He stated that the high tariffs imposed by the US on Chinese and Vietnamese products would drive labor-intensive industries to seek new locations for their operations.

Luhut emphasized that Indonesia has the potential to become a prime destination for this relocation. However, he stressed that the country must provide regulatory certainty for labor policies and streamline the licensing process.

"The high tariffs imposed by the US on China and Vietnam are pushing labor-intensive industries to find new locations. Indonesia has the potential to be their next destination, but only if we can guarantee regulatory certainty for labor and simplify the licensing process," Luhut wrote in an official Instagram post on @luhut.pandjaitan, Thursday (Feb 27, 2025).

Government Needs Private Sector Support

Luhut also underlined that the government cannot work alone in attracting investment. He highlighted the crucial role of the private sector as a key partner in economic growth and job creation.

"Improving governance and fostering a conducive investment climate must be a shared priority," he stated.

Additionally, he acknowledged President Prabowo Subianto’s strategic move to consolidate government efforts at all levels through a retreat program. This initiative aims to enhance the responsiveness of regional leaders in addressing economic challenges.

"Let us serve the people by working smarter, more efficiently, and making bold decisions for a more prosperous and just Indonesia," he concluded.