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Indonesia to propose trade deal, relax US fruit imports as GSP extended
The change to the horticulture import policy was made to accommodate imports of American products and secure their delivery time so they can meet surging demand during times such as Chinese New Year.
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Indonesian President Joko Widodo and US Secretary of State Mike Pompeo wave during their meeting at the Presidential Palace in Bogor, Indonesia, Oct. 29, 2020. ( Indonesian Presidential Palace/Rusman)
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ndonesia is seeking a limited trade deal with the United States and is moving to implement a relaxation for horticulture imports following the extension of a preferential trade facility.
The limited trade deal was expected to cut tariffs of above 5 percent on Indonesian goods by a half, said Indonesian Ambassador to the US Muhammad Lutfi.
“I am going to write a letter to the [United States Trade Representative] to propose [this to] the US, and hopefully we will get a positive response,” Lutfi said in a virtual briefing on Monday evening.
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan, Trade Minister Agus Suparmanto, Communications and Information Minister Johny G. Plate and State-Owned Enterprises Minister Erick Thohir were expected to visit Washington on Nov. 15 for the trade talks, Lufti added.
The plan follows the US decision on Sunday to extend the general system of preferences (GSP) facility for Indonesian exports after 2.5 years of review, thus maintaining tariffs on 3,572 commodities at zero.
Indonesia is one of 120 countries that have benefited from the GSP, the oldest and largest US trade preference program. It eliminates duties on thousands of products to promote economic development in beneficiary countries and territories.
Lutfi said the GSP was the first step to reach the limited trade deal and expected that the deal, if agreed, would double the trade value between Indonesia and the US to around US$60 billion in five years.
