Government Encourages Hundreds Of Leading Commodities To Be Tariff-Free To US

Containers (Photo: Antara)

JAKARTA - Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso said that hundreds of items were divided into several large groups such as agro, horticulture, critical minerals, and labor-intensive industrial products proposed to obtain excellence or exceptions from the reciprocal tariff for Indonesian export products to the United States (US).

"Everything that is listed in the letter, we will pursue it to 0 percent. Optimally yes. Because if we can fight for it, it will be concretely exported. If there is a general accusation, we only set the rate. 11,000 HS codes do not necessarily have all the exports there, right. For what we are fighting for, this achievement is the real export potential," he added to the media crew, Thursday, August 28.

"Only if there are groups, that's all. It's just a lot, hundreds like it," he added.

Susiwijono said that the Government focuses on superior products that are competitively owned or controlled by Indonesia. For example, rubber is produced by only a few countries so that the bargaining position will be stronger.

He added that the proposed products to get exemptions from tariffs include superior commodities such as coffee, cocoa, rubber, palm oil, horticultural products, other agros, as well as canned pineapple and meranti wood.

Susiwijono said the government also pushed the canned pineapple from Lampung which is one of the largest exports to the US whose export value even reached 100 million US dollars.

"So it is indeed a product that only exists with us, it takes the American people, which we encourage, to zero. (the net worth of raw materials?) No, it's cans and cans. That's the largest export in the world. (PT Great Giant Pineapple) GGPC in Lampung," he said.

He added another example is meranti wood which was specifically requested by the US because it was needed for their industry.

"The need is high. So he specifically asked for meranti wood. If that's what we ask must be 0 percent," he said.

Susiwijono said that Indonesia's target is to fight for a 0 percent tariff for all commodities listed in the proposed letter that has been sent.

"We must focus on superior products that are competitively owned or controlled by Indonesia. For example, rubber is produced by only a few countries. That way, our bargaining position will be stronger," he added.

Susiwijono emphasized that the government was serious in fighting for this, and had even held an online meeting at night with the Ministry of Foreign Affairs team to adjust Washington's time.

He conveyed that Indonesia was communicating intensively with the United States Trade Representative (USTR) regarding the reciprocal tariff on Indonesia's export products to the United States.

"Yes, we have sent the list. Pak Airlangga's official letter to the same USTR to (Commerce Secretary Howard) Lutnick. There are two letters," he said.

He added that currently his party together with the Ministry of Foreign Affairs are preparing a follow-up schedule for negotiations and have started initial discussions online with USTR.

"In the past few days, last night too, we were online. Online with USTR. We are with the Ministry of Foreign Affairs first," he said.

According to him, the negotiations were conducted online because USTR was still compiling a schedule due to the large demand from other countries. However, online communication continues to run well.

"It's just that, when they want to discuss the substance, that's what they will do, there's also a technical team that will handle this. Well, that's what we'll need to finish the schedule. Only later, in September, either the first, second week, we will start physical in-person going there," he said.