JAKARTA - Minister of Agriculture Andi Amran Sulaiman stated that the zero-percent tariff exemption for Indonesian agricultural commodity groups to the United States (US) market through a reciprocal trade agreement is a golden opportunity to significantly increase national exports.
"This is a big opportunity. A big opportunity, why? Kakao, CPO (palm oil), and our CPO are the largest sent, then rubber and others, God willing, zero tariffs," said Minister of Agriculture Amran when confirmed about the development of subsidized fertilizer on the sidelines of the Export Release of Poultry and Derivatives to Japan, Singapore and Timor Leste in Jakarta, quoted by Antara, Wednesday, March 4.
According to the Minister, 53 agricultural commodities are guaranteed to receive zero percent tariffs in the reciprocal trade scheme, so that access to the United States market is increasingly open.
Featured commodities such as cocoa, crude palm oil (CPO), and rubber are said to be the products that benefit the most from the tariff exemption policy.
He emphasized that this policy is not a new discourse, but a continuation of the routine trade that has been running, now with the additional benefit of zero percent entry tariffs.
The government ensures that Indonesia's agricultural commodity trade routes to the United States are in a safe condition without significant obstacles amid global trade dynamics.
Especially for crude palm oil, Indonesia has been supplying around 1.7 million tons to the US market so that the zero-percent tariff policy is considered a golden opportunity.
"The point is that safe agriculture entering America is zero percent. And we will encourage, especially CPO, we are the largest 1.7 million tons. Well, this is our golden opportunity to encourage cocoa, coffee, encourage the American market is very large," said Amran.
In addition to CPO, cocoa, and coffee, the government will also encourage the increase of various other agricultural products, both in raw and processed form, to maximize the potential of the American market. "Whatever it will be (we export)," said Amran.
Previously, economic diplomacy led by President Prabowo Subianto had yielded concrete results for the national agricultural sector.
Through the reciprocal trade agreement between Indonesia and the United States, a total of 173 tariff posts (HS Code) covering 53 groups of Indonesian agricultural commodities and their derivatives are officially exempt from import duties to 0 percent in the United States market.
This strategic step opens wider access for national agricultural products to penetrate this global market while strengthening the competitiveness of Indonesia's flagship commodities in the midst of international trade competition.
The agreement within the framework of the Agreements on Reciprocal Trade (ART) signed by President Prabowo Subianto and President of the United States Donald Trump is part of strengthening the economic partnership between the two countries.
Coordinating Minister for the Economy Airlangga Hartarto explained that in the agreement entitled Toward a New Golden Age for the US-Indonesia Alliance, there were 1,819 tariff posts for Indonesian products, both in the agricultural and industrial sectors, which were exempt from import duties into the US market.
"In this ART there are 1,819 tariff posts for Indonesian products, both agricultural and industrial, including palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, aircraft components, whose tariffs are 0 percent," said Airlangga in Jakarta, Friday (20/2).
From the agricultural commodity sector, which has received a 0 percent tariff facility, includes tropical fruits such as bananas, pineapples, mangoes, durians, and papayas; coffee with six tariff posts; green tea and black tea; as well as various strategic spices such as pepper, nutmeg, cloves, cinnamon, cardamom, ginger, and turmeric.
In addition, cocoa and its derivatives, palm oil, palm kernel oil, as well as palm fruit and palm kernel are also included in the tariff-free list. Processed fruit products, tapioca and sago-based flour and starch, to potassium-based mineral fertilizers also receive the same facilities.
Previously, at the Business Summit at the US Chamber of Commerce, Washington DC, Indonesia and the United States also signed a number of Memorandums of Understanding (MoU) that strengthen the implementation of the reciprocal trade agreement.
With the release of 173 tariff posts in the agricultural sector to 0 percent, the government is optimistic that exports of national flagship commodities will increase as the competitiveness of Indonesian product prices in the United States market increases.
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