Coordinating Minister Airlangga Calls US Tariff Negotiations Entering The Final Stage
Coordinating Minister for Economic Affairs Airlangga Hartarto said that the tariff negotiation process between Indonesia and the United States (US) is now in the final stage.
Negotiations so that Indonesia's mainstay commodities are exempted, the tariff is targeted for completion this year.
"Almost we have discussed all the text, we have also sent it to America, it's just a matter of finalizing the legal drafting on both sides," said Airlangga as quoted by ANTARA, Monday, November 17.
He added that there were no objections from other countries regarding the special tariff agreement, including from the UK.
"There are no protests, I have spoken (with the UK). But of course if we provide facilities to one country, other countries also want it, that's normal," he said.
Coordinating Minister Airlangga explained that Indonesia still has many umbrellas for trade cooperation with other partners, such as the Comprehensive Economic Partnership Agreement (CEPA) with the European Union, Canada, to China.
That way, the dynamics of trade relations are considered to be manageable fairly without causing tension.
As for the agreement with the US, a number of Indonesian commodities that are not produced by Uncle Sam's country will get a rate of 0 percent.
The commodities include crude palm oil (CPO), rubber, tea, coffee, and other rubber products. Meanwhile, the tariff for textiles and footwear is still in the discussion stage.
As previously reported, the US has approved a reduction in tariffs for a number of Indonesian products from an initial threat of 32 percent to 19 percent.
As part of the negotiation package, Indonesia also conveyed its commitment to increase imports from the US to balance the trade balance between the two countries.
Indonesia is committed to importing energy from the US with a value of up to 15 billion US dollars, while imports of agricultural products from the US are targeted at US $ 4.5 billion.
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Di sektor investasi, terdapat kesepakatan pembangunan fasilitas blue ammonia di AS dengan nilai mencapai 10 miliar dolar AS, serta investasi lainnya untuk proyek-proyek di Indonesia.
Dengan keseluruhan paket perdagangan dan investasi tersebut, Airlangga menilai posisi neraca dagang Indonesia-AS bakal kembali seimbang.
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In the investment sector, there is an agreement to build a blue ammonia facility in the US with a value of up to 10 billion US dollars, as well as other investments for projects in Indonesia.
With the entire trade and investment package, Airlangga assessed that Indonesia-US trade balance position would return to balance.