**Jakarta**: Syafruddin Karimi from the University of Andalas examines the evolution of U.S. foreign policy under the ‘America First’ doctrine, stressing the need for Indonesia to adapt its economic diplomacy to thrive in a more competitive international arena shaped by transactional relationships.
The economic landscape of international relations is undergoing significant transformation, as articulated by Syafruddin Karimi from the Department of Economics at the University of Andalas. His analysis highlights the shift in United States foreign policy under the banner of “America First,” which emphasizes transactional relationships and economic benefit over traditional ideals of democracy and human rights.
Since the administration of Donald Trump, the United States has repositioned itself as a transactional power, prioritising economic calculus in its international engagements. The notion of “Bring jobs back to America” and “Fair trade, not free trade” encapsulated this shift, where the U.S. clearly indicated its unwillingness to continue bearing global burdens without reciprocity. Trump’s tenure saw a reduction in contributions to international bodies like the United Nations, demands for increased financial commitments from NATO allies, and the renegotiation of trade agreements, such as transitioning from NAFTA to USMCA.
This philosophy persists into the current Biden administration, albeit with a subtler approach. The U.S. continues to safeguard its domestic industries, restrict the export of critical technologies to China, and emphasises the importance of resilience in global supply chains. This forms a practical framework where America conceptualises the world not as a community of shared values but rather as a marketplace where economic advantages dictate partnerships.
The underlying principle of this strategy is grounded in the realist perspective that economic strength is the cornerstone of national power. A robust economy underpins military capabilities, technological prowess, and diplomatic leadership. Hence, the U.S. seeks to ensure that all bilateral relationships deliver tangible economic benefits, moving beyond mere alliance to demand measurable contributions, whether as export markets, investment locations, or sources of strategic raw materials.
However, this stance has placed pressure on various countries, including traditional allies. Nations such as Germany and Japan find themselves compelled to increase their defence budgets to mitigate reliance on the U.S.’s military support. Canada and Mexico are renegotiating trade agreements to make them more favourable to American interests. Even Southeast Asian countries, like Indonesia, are reassessing their partnerships, which no longer can depend solely on strategic rhetoric without concrete economic evidence.
While this approach renders U.S. dealings more transparent—removing the obfuscation of normative language regarding a “rules-based world order”—it has also precipitated a wave of global uncertainty. The U.S.’s withdrawal from significant international agreements, such as the Paris Climate Accord and the cessation of funding to the World Health Organization, has eroded frameworks of global coordination that America previously championed.
In the midst of these dynamics, Indonesia faces the challenge of adapting to a landscape that is increasingly pragmatic rather than idealistic. Karimi underscores the necessity for Indonesia to clearly define its strategic position in the Indo-Pacific and to bolster its economic diplomacy by delivering concrete value to major partners, including the U.S., China, Japan, and the European Union.
Indonesia possesses numerous advantages, including a vast market, strategic geographical positioning, abundant natural resources, and a youthful, productive population. However, these assets will only translate into significant advantages if they are bundled into a coherent and bold policy narrative. For Indonesia to be recognised as an equal partner rather than a passive player, it must demonstrate measurable contributions, transcending mere rhetoric of neutrality.
The “America First” strategy embodies a broader trend towards competitive and transactional interactions on the global stage. The focus has shifted from mutual benefits to individual offerings, prompting nations to justify their economic significance or risk being sidelined in the diplomatic arena of major powers.
Thus, Indonesia is called upon to transcend the comfort of symbolic diplomacy. It is essential to forge alliances based on substantial national interests, build leverage through industrial strength, food security, technological innovation, and regional integration. Most importantly, Indonesia must assert its interests proactively and not merely follow the currents dictated by larger powers.
While the “America First” paradigm may render the global environment more challenging, it simultaneously presents opportunities for nations adept at navigating these changing tides. In an economic-driven world, the necessity for strong and relevant partnerships becomes paramount, and Indonesia has the potential to seize this moment—if it is willing to engage on the global stage in a redefined manner.
Source: Noah Wire Services
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