Prabowo Negotiates Trump's Import Tariffs, DPR Believes 90 Days Delay Can Be Used

President Prabowo Subianto. (Photo: ANTARA)

JAKARTA - Member of Commission XI DPR RI, Charles Meikyansah supports President Prabowo Subianto's move to negotiate with the President of the United States (US) Donald Trump regarding import rates.

Charles believes the government could take advantage of Trump's 90-day import tariff delay, as a momentum to strengthen Indonesia's position in trade negotiations.

"The government's efforts to negotiate must be supported. The government can take advantage of the existing break," said Charles, Saturday, April 12.

Charles also encouraged domestic policy reforms that support the competitiveness of national exports in response to current global conditions.

"We need to move quickly both in the diplomatic and domestic channels to ensure that our industrial sector is not significantly affected," he continued.

According to Charles, the 32 percent tariff delay for Indonesian products must be responded to with concrete steps.

Moreover, in the growing tension of trade wars, he assessed, Indonesia has a great opportunity to become an alternative investment and export destination.

Especially from countries that are predicted to be more affected, such as Vietnam, China, and Thailand.

"The textile, shoe, garment, and furniture sectors are examples of industries that have bright prospects in the midst of this global dynamics. The government needs to immediately accelerate export decregulation policies, simplifying business licenses, and fiscal incentives so that we can seize re-shoring opportunities from other countries," he explained.

In the negotiation process, Charles assessed that the government needed to formulate a balanced negotiation scheme. One of them is by considering increasing imports from the US for strategic sectors such as soybeans, LPG, and food products.

"If the US wants to reduce its trade deficit, then Indonesia can offer an increase in imports of certain products, as long as it does not harm the domestic industry. This is part of rational reciprocity diplomacy," said Charles.

The legislator from the East Java IV electoral district said that the Domestic Component Level Unit (TKDN) which has been considered to hinder the entry of investment also needs to be reformed.

"The momentum of negotiations with the US can be an entry point for the improvement of TKDN regulations. TKDN must be reviewed in order to continue to protect national interests, but still attractive to investors," he said.

"We believe that the government under President Prabowo's leadership is able to negotiate well," added Charles.

However, the member of the Commission in the DPR in charge of Financial Affairs reminded the government to continue to pay attention to business actors and domestic potential.

Charles hopes that in the future, the government can formulate a balanced economic policy.

"This is the time for us to come with one strategy and one commitment, namely protecting national interests with smart diplomacy and targeted policies," he concluded.

As is known, Trump postponed the application of volume II import rates which should have been effective Wednesday, April 9. The postponement period is valid for 90 days to 75 countries, except China.

Despite delaying 3 months, Trump still charges a minimum import rate of 10 percent.

The delay included Indonesia, which was previously affected by 32 percent.

Vietnam, which is subject to 34 percent, is also 10 percent for the time being.

Trump reasoned that the 90-day delay was because many parties responded excessively to their decisions regarding the trade rate.

Meanwhile, Foreign Minister Sugiono said Prabowo had asked for time to meet with Trump.

One of the issues discussed if the meeting between Prabowo and Trump when it is realized is related to the imposition of import rates for Indonesia.