GAPKI Promotes Strengthening Trade Diplomacy in Global Markets

JAKARTA - The Indonesian Palm Oil Entrepreneurs Association (GAPKI) encourages the strengthening of trade diplomacy to face potential tariff and non-tariff barriers in the global market.

"Trade diplomacy must be strengthened to face potential non-tariff tariff barriers in the global market," said GAPKI Chairman Eddy Martono, quoted by Antara, Saturday, February 28.

He added that bilateral and non-bilateral cooperation between countries, including between business actors, must continue to be emphasized.

GAPKI itself has signed several Memoranda of Understanding (MoU) with associations in importing countries that are in dire need of palm oil from Indonesia.

For information, economic diplomacy led by President Prabowo Subianto has yielded concrete results for the national agricultural sector.

Through the reciprocal trade agreement between Indonesia and the United States, a total of 173 tariff posts (HS Code) covering 53 groups of Indonesian agricultural commodities and their derivatives are officially exempt from import duties to 0 percent in the United States market.

This strategic step opens wider access for national agricultural products to penetrate this global market while strengthening the competitiveness of Indonesia's flagship commodities in the midst of international trade competition.

The agreement within the framework of the Agreements on Reciprocal Trade (ART) signed by President Prabowo Subianto and President of the United States Donald Trump is part of strengthening the economic partnership between the two countries.

Coordinating Minister for the Economy Airlangga Hartarto explained that in the agreement entitled Toward a New Golden Age for the US-Indonesia Alliance, there were 1,819 tariff posts for Indonesian products, both in the agricultural and industrial sectors, which were exempt from import duties into the US market.

From the agricultural commodity sector, which has received a 0 percent tariff facility, includes tropical fruits such as bananas, pineapples, mangoes, durians, and papayas; coffee with six tariff posts; green tea and black tea; as well as various strategic spices such as pepper, nutmeg, cloves, cinnamon, cardamom, ginger, and turmeric.

In addition, cocoa and its derivatives, palm oil, palm kernel oil, as well as palm fruit and palm kernel are also included in the tariff-free list. Processed fruit products, tapioca and sago-based flour and starch, to potassium-based mineral fertilizers also receive the same facilities.