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Jakarta Post

Explainer: What the US GSP program means for Indonesia

  • Dzulfiqar Fathur Rahman

    The Jakarta Post

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Jakarta   /   Thu, November 5, 2020   /  07:23 am
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Indonesia has recently secured its beneficiary status in the United States’ general system of preferences (GSP) program, which is expected to help Indonesia increase its exports to – and overall trade with – the world’s largest economy.(AFP/Indonesian Foreign Ministry )

Indonesia has recently secured its beneficiary status in the United States’ general system of preferences (GSP) program, which is expected to help Indonesia increase its exports to – and overall trade with – the world’s largest economy. The GSP, first established in 1974, is the US’ largest and oldest trade preference program. It aims to promote the growth of developing economies through trade by eliminating duties on thousands of products. The program currently has 119 beneficiary states. The US granted the preferential status to Indonesia in 1980. Under the program, Indonesia can export 3,572 types of products to the US without tariffs. So far, the country has only exported 729 of those preferred products. Despite the limited use of the program, the Indonesian government made a concerted effort to secure the extension of the country’s prefer...