Officials from the two institutions met for the first time on Tuesday, with House Commission I member Ilham Pangestu from the Golkar Party raising his concerns over the ongoing trade war and its potential impacts on Indonesia.

“This would, of course, greatly affect the Indonesian economy in terms of trade and investment, so what are the threats and opportunities Indonesia will face in this regard and what economic diplomacy strategy will be carried out by the Foreign Ministry?” he asked ministry officials.

Economic diplomacy remained the ministry’s number one priority, Foreign Minister Retno Marsudi told lawmakers as she revealed the direction of Indonesia’s foreign policy for the next five years. The priority programs, announced under Retno’s signature “4+1 formula”, comprise policies she previously laid out during her annual foreign policy address at the beginning of the year, with the only addition being structural reforms.

Deputy Foreign Minister Mahendra Siregar, who was tasked by President Joko “Jokowi” Widodo to deal with economic policies, said the US-China trade war had indeed affected the growth and economic stability of the entire world, including countries in Southeast Asia, and even shaped geopolitical ties between countries.

The latest trade data suggests that economic activity in Indonesia is slowing, in part as a result of the trade war.

However, Mahendra pointed out that the country could still benefit from the situation.

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