Trump's trade shock pressures Indonesia to revamp policy, former minister says

Sofyan Djalil urges that unemployment and fiscal discipline be tackled

20250530 Indonesian Business Council CEO Sofyan Djalil 3

Indonesian Business Council chief executive Sofyan Djalil speaks to Nikkei Asia during an interview on May 30. (Photo by Yuki Kohara) 

SOUMYAJIT SAHA

TOKYO -- Indonesia's recent economic downturn can only be solved by structurally reforming government policy and the bureaucracy, a former cabinet minister now leading a business lobby group says, noting the U.S. tariffs are providing an unlikely impetus.

"A lot of Indonesians believe that [U.S. President Donald] Trump's trade policies have created the external pressure for internal policy to be changed," Sofyan Djalil, chief executive of the Indonesian Business Council, said. "This shock might help us reform trade policy, bureaucracy and investment requirement policies."

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