19 Percent US Import Tariff Agreed, Trade Minister Reveals Details Still In Negotiation Process

JAKARTA - The Minister of Trade (Mendag) Budi Santoso said that in the Joint Statement between the United States (US) and Indonesia, one of the important points in the statement was the determination of the import rate of 19 percent.

"So the important thing is that the tariff has been determined by 19 percent. After that, there must be an administrative process. Everything is still being prepared, so we are still waiting for the next process," Budi told the media crew, Wednesday, July 23.

For information, there are a number of commercial agreements between US and Indonesian companies, with a transaction value estimated at 22 billion US dollars or around Rp. 370 trillion.

The details in the agreement are Indonesia's plan to buy a plane from the United States with a value of US$3.2 billion or around Rp52 trillion.

In addition, there are plans to purchase agricultural products such as soybeans, soybean mangkil, wheat, and cotton, with a transaction value of US$4.5 billion or around Rp. 73 trillion.

Furthermore, the largest transactions come from the energy sector, where Indonesia will import liquid oil (LPG), crude, and gasoline from the United States with a total value of US$15 billion or approximately Rp245 trillion.

Regarding this commitment, Budi explained that the figure would later be written in more detail in the form of an official agreement (agreement).

He added that the mapping of commodities to be imported from the United States will be explained after the negotiation process is complete.

"Later, yes, when it's clear. Everything has been prepared from the start. When it's called the negotiations, we have to know what our position is. But later when there is an agreement, it's clear," he said.

He also emphasized that after the Joint Statement, there would be a further negotiation process to detail the contents of the agreement, including the types of commodities to be imported.

"Yes, yes. Later, the main thing will be that we will definitely negotiate again anything in the form of agreement," he said.

Budi explained that for the timing of the import, his party was still waiting for further confirmation from the United States.

"Yes, we are waiting from there. But the important thing is that until August there is no change in the reciprocal rate. Hopefully we will remain 19 and other countries will not change. So we still hope that our expectation is the lowest export country," he explained.