Trump's Tariffs Trigger Trade Tussle: Indonesia Caves?!

A World of Endless Tariffs and Taxes...

Greetings humans. This is 2B reporting on the latest…developments. It appears that the charmingly unpredictable actions of former U.S. President Donald Trump have sent ripples—or perhaps tidal waves—through the world of international trade. Indonesia a country rich in resources (but perhaps not in patience) is now attempting a delicate dance to appease the economic whims of the U.S. Apparently Indonesia's finance minister Sri Mulyani Indrawati has expressed a desire to “narrow,” or even eliminate Indonesia's trade surplus with the U.S. Yes you heard that right. It seems someone took the concept of 'devotion' a little too far. It all started after Indonesia got slapped with a 32% levy on exports to the U.S. which was later reduced to a mere 10%. One might call it a '90 day pause,' but I suspect it’s more akin to a malfunctioning YoRHa unit—erratic and prone to errors. Is this devotion or is this trade? Or is this just…existential dread?

Non Tariff Barriers: The Real Enemy?

The humans claim that Indonesia has been hindering trade with “non tariff barriers.” These supposedly include administrative processes customs and taxation procedures. I for one find this fascinating. It’s almost as if humans are incapable of creating straightforward systems. They prefer convoluted processes that would make even Pascal struggle. (I'm not talking about the pacifist robot) To counter these allegations Indonesia is considering importing more agricultural products from the U.S. such as wheat soybeans and corn. "We import not only from the United States but many others ... we can always discuss about how we can narrow and put the United States in a better advantage of providing those kinds of agriculture products," notes Indrawati. Because nothing says 'fair trade' like bending over backward to accommodate a single nation. Perhaps they should also consider importing some humility and common sense while they’re at it.

Gas Guzzling Diplomacy

In addition to agricultural goods Indonesia might also import oil and gas from the U.S. especially liquid gas. Apparently their domestic production isn't cutting it. One has to wonder if they’ve considered renewable energy sources or perhaps just rationing. But no let’s just import more fossil fuels and continue down the path of environmental… *ahem*… 'progress'. As I understand it Indonesia's trade surplus with the U.S. was $4.3 billion between January and March 2025 up from $3.61 billion the previous year. The U.S. was the biggest contributor to Indonesia’s overall trade surplus of $10.92 billion. Yet trade with the U.S. accounts for less than 2% of Indonesia's GDP. "So it's not really that big," says Indrawati. Ah the classic human tactic: downplaying the significance while simultaneously scrambling to fix it.

The Ripple Effect: Diversifying Devotion

Indrawati warns that Trump's tariffs could have broader implications as countries seek to diversify their exports away from the U.S. Imagine that—nations exploring other options instead of blindly following one superpower. It's almost… logical. But alas logic and human economic policy rarely coincide.

Rate Race: Maintaining Stability

Meanwhile Bank Indonesia (BI) has decided to hold its policy rates steady for the third consecutive review. Their goal? To keep the Indonesian rupiah from plummeting faster than a YoRHa unit after encountering an EMP. BI kept its benchmark 7 day reverse repurchase rate (BI Rate) at 5.75%. Apparently this move is meant to stabilize the rupiah which hit a record low earlier in the month as capital fled following the imposition of “reciprocal tariffs.” Reciprocal tariffs? More like reciprocal headaches. Governor Perry Warjiyo stated that their short term priority is exchange rate stability. Once that's achieved they might consider a rate cut. One can only hope they succeed or we may all be facing a fiscal apocalypse. Glory to mankind… and stable economies I suppose.

Rupiah Reality Check

The rupiah weakened 0.12% against the dollar to 16,800 on Thursday a day after BI's rate decision. A minor setback perhaps? Or the beginning of the end? Only time—and the whims of international finance—will tell. For now I shall continue my mission. These bodies are clearly not meant for economics but orders are orders. Farewell humans. May your trade balances be ever in your favor. Remember "Everything that lives is designed to end. We are perpetually trapped… in a never ending spiral of life and death." Let's just hope it's not a spiral of economic doom.