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Prabowo calls for ‘realism over theory’ amid US tariff threats

Despite earlier hopes that the 19 percent US tariff deal would tip the scales in Indonesia’s favor, it was later revealed that regional peers such as Malaysia, Thailand, the Philippines and Cambodia also received the same rate.

Ruth Dea Juwita (The Jakarta Post)
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Thu, August 7, 2025 Published on Aug. 7, 2025 Published on 2025-08-07T13:00:14+07:00

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Grounded response: President Prabowo Subianto (center) addresses a plenary cabinet meeting on Wednesdau at the State Palace in Jakarta. The President has emphasized that Indonesia’s national transformation strategy must be rooted in realism as it navigates escalating global conflicts and economic uncertainty.
Grounded response: President Prabowo Subianto (center) addresses a plenary cabinet meeting on Wednesdau at the State Palace in Jakarta. The President has emphasized that Indonesia’s national transformation strategy must be rooted in realism as it navigates escalating global conflicts and economic uncertainty. (Courtesy of/BPMI Sekretariat Presiden)

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resident Prabowo Subianto has emphasized that Indonesia’s national transformation strategy must be rooted in “realism” as the country navigates escalating global conflicts and economic uncertainty, triggered by tariff policies under United States President Donald Trump.

“These real conditions cannot be dealt with through theories or imaginations,” Prabowo said during a plenary cabinet meeting at the State Palace on Wednesday.

“Idealism is needed, but what will save us is realism. We must realistically assess the situation and take appropriate steps.”

In his opening remarks, Prabowo said the escalating geopolitical and geo-economic turbulence had tested the transformation strategy he announced before taking office on Oct. 20 last year, a plan he reaffirmed was based on “real, factual conditions” at national, regional and global levels.

He further highlighted geo-economic uncertainty driven by rising protectionism, particularly the unilateral tariffs imposed by the US.

Prabowo praised his economic ministers and the National Economic Council (DEN) for conducting trade tariff negotiations with Washington since April with “composure”.

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“We’ve succeeded in negotiating without being emotional, without taking the bait and with full awareness of the major interests we must protect,” the President said.

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