JAKARTA - Spokesperson for the Coordinating Ministry for Economic Affairs of the Republic of Indonesia, Haryo Limanseto, stated that the government continues to monitor the latest policies issued by the United States Trade Representative (USTR), including the results of investigations based on Section 301 of the Trade Act of 1974 related to international trade practices.
Haryo said the government took note of the USTR's recognition that Indonesia was one of the countries with a strong commitment and regulatory framework to prevent and eradicate forced labor practices in the global supply chain.
According to him, during the investigation process, the Indonesian government actively communicated with the United States government regarding the Section 301 investigation process.
"Indonesia also actively participates in the investigation process which includes 2 issues, namely excess capacity in the manufacturing sector and the ban on the import of goods produced from forced labor, ranging from submitting written submissions, attending public hearings and also intergovernmental consultations," he explained in his statement, Friday, July 24.
In the results of the investigation, he explained, the USTR set additional tariffs based on Section 301 on products from 60 countries and Indonesia is included in the group of countries subject to additional tariffs of 10 percent, along with 16 other countries and regions such as Malaysia, India, Mexico, Canada, and the United Kingdom.
"We also take note of the USTR's decision to include some products from Indonesia in the tariff exemption list (product exemptions)," he said.
Haryo added that the government is still waiting for an official announcement of the results of the USTR investigation regarding the issue of excess capacity which according to information from the United States will be published in the near future.
He added that the government hopes that the final decision will provide a more favorable tariff treatment for Indonesia, including accommodating products that have previously obtained tariff exemptions through the signing of the Agreement on Reciprocal Trade (ART).
"The government is actively continuing to consult with the USTR to obtain the best and most competitive tariffs," he said.
On the other hand, Haryo said the government also prepared strategic steps to maintain the competitiveness of national exports, namely from the domestic side, the government will simplify the import regulations for raw materials to reduce production costs so that Indonesian export products are more competitive.
Meanwhile, in terms of market access, he said the government would optimize the use of various trade agreements that have been in force, such as IA-CEPA, IK-CEPA, and RCEP, as well as accelerating the completion of a number of new cooperation, including I-EAEU FTA, IEU-CEPA, and ICA-CEPA, as an effort to expand export markets outside the United States.
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