JAKARTA - Cabinet Secretary (Seskab) Teddy Indra Wijaya stated that 90 percent of Indonesia's proposals have been accommodated in the trade agreement between Indonesia and the United States (US).
The statement was made following the trade agreement between the two countries which was signed by President Prabowo Subianto and President Donald Trump on the sidelines of the first meeting of members of the Board of Peace (BoP) in Washington D.C., USA, Thursday (19/2).
"Through intensive negotiations with 90 percent of Indonesia's proposals fulfilled, as many as 1,819 national products have obtained zero percent tariffs in the US market, including flagship commodities such as palm oil, coffee, cocoa, and electronic components," he said as quoted by ANTARA, Friday, February 20.
The Secretary of the Cabinet said that the Indonesian delegation had undergone intensive negotiations, which had visited Washington D.C. four times, seven rounds of negotiations, and more than nine direct and virtual meetings.
The agreement is also said to be purely in the economic sector without involving non-economic articles such as land, geopolitics, and others. Both parties respect the sovereignty of each country.
According to Teddy, one of the most significant achievements in the historic agreement was the granting of a 0 percent tariff for 1,819 national products in the United States market.
"With a zero percent tariff, Indonesian products become more competitive in the US market, opening up opportunities for increased exports, and expanding market access for national business actors," said a statement from the Setkab.
Not only that, according to Teddy, the agreement also opens up opportunities for an increase in Indonesian textile exports up to ten times and has the potential to benefit around 4 million national textile industry workers.
On the other hand, the government also facilitates protection of domestic food prices to remain a priority in the framework of cooperation.
As part of the reciprocal, Indonesia provides zero percent tariffs for US agricultural products in the form of soybeans and wheat. This policy aims to maintain the stability of the prices of national staple foods, such as tofu, tempe and noodles.
This trade agreement was accompanied by investment commitments totaling 38.4 billion US dollars.
The investment targets the plan to purchase 50 Boeing aircraft, import gas and crude oil worth 15 billion US dollars per year, the extension of the Freeport contract until 2061 to additional investments of 20 billion US dollars in the next 20 years.
As part of and reciprocal trade agreements, Indonesia and the US formed the Council of Trade and Investment as an economic dialogue forum.
The forum will discuss trade and investment issues, anticipate abnormal import surges, and maintain the balance of trade between the two countries.
Through the council, every economic problem will be resolved first through the path of dialogue and coordination.
The government considers this agreement not merely a trade agreement, but a strategic step towards strengthening bilateral relations that are more balanced and mutually beneficial.
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