API Welcoming The Success Of The Government In Negotiating Import Tariffs With The US

Chairman of the Indonesian Textile Association (API) Jemmy Kartiwa. (Photo: Theresia Agatah/VOI)

JAKARTA - The Indonesian Textile Association (API) welcomes the success of the Indonesian government in the bilateral trade negotiations process with the United States (US) which resulted in an adjustment of import rates to 19 percent.

API Chairperson Jemmy Kartiwa appreciated President Prabowo Subianto's steps as well as Coordinating Minister for Economic Affairs Airlangga Hartarto who did this.

He assessed that this success reflects the effectiveness of Indonesia's strategic economic diplomacy and safeguards national interests.

The textile and textile product (TPT) industry is mainly helped by the reduction in tariffs because this tariff reduction will strengthen market access and increase the competitiveness of Indonesian TPT products in the US market.

The US is a strategic trading partner for the export of TPT products for years.

"The success of negotiating this tariff adjustment is a reflection of the government of the Republic of Indonesia's alignment with the strategic manufacturing sector, especially labor-intensive industries such as textiles and textile products. We hope that this policy follow-up will encourage further policies, including harmonization of technical regulations and trade facilitation so that labor-intensive industries can take advantage of export opportunities optimally," he said in his official statement, Friday, July 18.

API also hopes that the government will actively facilitate the strengthening of Indonesia's bilateral trade flow "US" in mutual.

This includes strengthening trade missions, logistical support, integrated trade promotions, and strengthening competitiveness through fiscal and non-fiscal incentives.

Jemmy also emphasized the importance of protecting the domestic market from the increase in finished products entering Indonesia in order to strengthen the capacity of the domestic manufacturing industry.

Government policies are also needed to encourage increased national industrial utilization, strengthen domestic supply chains, and create a multiplier effect of labor absorption and massive investment in the TPT sector.

As the government's strategic partner, API expressed readiness to collaborate in supporting the national industry development agenda, increasing domestic added value, and diversifying global sustainability and competitiveness-based export markets.