Apart From Residual, Indonesia Gets Two Other Tariffs From The US

Director General (Dirjen) of International Trade Negotiations of the Ministry of Trade, Djatmiko Bris Witjaksono. (Photo: ANTARA)

JAKARTA - The Ministry of Trade (Kemendag) is open regarding the tariff policy imposed by the United States (US).

In addition to reciprocals, the US has also implemented another tariff policy to Indonesia.

Director General (Dirjen) of International Trade Negotiations of the Ministry of Trade, Djatmiko Bris Witjaksono, said that there were three tariffs imposed by the US on Indonesia.

First, continued Djatmiko, the new basic tariff or the new baseline tariff. Where the US increases the basic tariff by 10 percent of the old basic tariff.

"How long is the basic tariff? Things, depending on the amount of the tariff, the goods are a lot, depending on what item, maybe some are 0, maybe some are 5, maybe some are 10, and so on. (But that's all increased by 10 percent," he said in a virtual press conference, Monday, April 21.

Djatmiko said the new basic tariff policy was applied to all countries except for Maxico and Canada. This is because they have a trade agreement, namely the United States-Mexico and Canada Agreement.

Furthermore, Djatmiko said another tariff policy that the US imposed on Indonesia was the reciprocal tariff or reciprocal tariff.

The amount of tariffs that Indonesia will pay for exports to the US is 32 percent.

"Indonesia has 32 percent (residual rates)," said Djatmiko.

Third, continued Djatmiko, the new tariff policy imposed by the US on Indonesia is sectoral tariffs. This tariff will be imposed on several special commodities, namely automotive aluminum steel and 25 percent of the automotive component.

"So if this sector, one country has been subject to sectoral tariffs, for example, Indonesia exports steel or aluminum or automotive and its components, then it will be subject to a sectoral tariff of 25 percent, then new and reciprocal basic rates will not be imposed," he said.

Djatmiko said the new tariff policy was an addition of the initial tariff set by the US to trading partners based on the type of goods.