Minister Of MSMEs: RI-US Trade Tariffs Benefit Each Other
JAKARTA - Minister of Micro, Small and Medium Enterprises (MSMEs) Maman Abdurrahman stated that the new trade tariff between the United States (US) and Indonesia had agreed to benefit both parties.
It is known that the US in its latest trade rate agreed to reduce the tariff for imported goods from Indonesia from 32 percent to 19 percent, while US products were exempted from import rates to the domestic market.
"This is the right compromise point in our opinion, benefiting both parties," he said, quoting Antara.
According to him, the negotiations taken by Indonesia to reduce US reciprocal rates were quite tough, so his party appreciated the reduction in the tariff.
However, Maman said that there needs to be steps to anticipate the massive potential of imported products entering the domestic market.
Mitigation steps taken by his party in terms of strengthening MSMEs are by providing ease of licensing, opening access to financing, evaluating existing policies, and strengthening market access to MSME products.
"Strengthening domestic market access is also to stem the entry of imported goods from outside, because we should not push all exports, but we do not focus on meeting the domestic market, eventually imported goods enter," he said again.
United States President Donald Trump stated that the import rate of 19 percent will be applied to Indonesian products entering the US, based on direct negotiations he made with Indonesian President Prabowo Subianto.
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"Indonesia will pay a 19 percent tariff to the United States for all imported goods from them to our country," Trump said.
The new value shows that an agreement has been reached to reduce US import rates for Indonesian products from the 32 percent announced
Furthermore, Trump said Indonesia promised to exempt all tariff barriers and non-tariffs for US products entering the Republic of Indonesia.
"If there are products from third countries with higher rates that will be exported to the US through Indonesia, the 19 percent tariff will be added to the product," Trump said.