KHI Industries pipe product - Photo by PT Krakatau Steel Tbk

JAKARTA (TheInsiderStories) – The United States (US) government gives an exception to 19 types of steel products carbon and alloy also stainless steel from global import tariffs of 25 percent, said trade minister on Monday (03/09).

This decision was issued on August 2 after Indonesia obtained an exceptions for 142 applications for carbon and alloy steel products in total volume of more than 6,784 tons and one request for aluminum sheet of 1,680 tons.
The decision came after Indonesian Trade Minister Enggartiasto Lukita met US Trade Minister Wilbur Ross in Washington D.C. end of July.

in his visit, the minister make various approaches to the US Government regarding Indonesia’s eligibility for the Generalized System of Preferences (GSP) program which is reviewed and pursued exceptions to the imposition of US global tariffs on Indonesian steel and aluminum products has been applied by the US since last March.

According to the Director General for Foreign Trade, Okay Nurwan, this exception is a concrete result of the Indonesian Government’s efforts to synergize steel and aluminum exceptions for the imposition of 25 percent import tariffs by the US for steel products and 10 percent for aluminum products.

She continued, there are still 12 exceptions requests for Indonesian steel products with a quantity of more than 336,688 tons and 276 applications for aluminum Indonesia products with a quantity of more than 367,351 tons that have not get a decision from the US Government. Nurwan said, Indonesian Government will continue to conduct intensive communication with the US.

Based on Statistic Indonesia’ data,the country’s steel exports to the US in January-June 2018 period recorded US$139 million, increased 78 percent from the same period in 2017. While Indonesia’s aluminum exports to the US
in January-June 2018 amounted to $147 million, or up 47 percent compared to the same period in 2017.

On March 23, 2018, US President Donald Trump raised tariffs on imports of steel and aluminum products, respectively each becomes 25 percent and 10 percent after previously applying a 0 percent tariff policy (duty free).

The basis of the rate increase is the result of an investigation by the US Ministry of Commerce carried out under the mandate of Section 232 of the Trade Expansion Act of 1962, where there was a threat to national security from steel imports aluminum to the US from all countries around the world, except Australia.

Before making a direct approach at the ministerial level, the Government of Indonesia has been more previously made efforts to exclude Indonesia from tariff increases. This effort carried out by the Ministry of Trade through written requests.


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The Insider Stories Founder Linda Silaen has a solid, proven history, established over more than a decade as a journalist with a leading internasional news organization, of being the first with the biggest economic news stories in Indonesia. Specializing in corporate news, Linda is also a veteran of some of the biggest macroeconomic and general news stories as Indonesia rapidly transforms into a major market economy. One of the founders of the original blog from which this company developed, Linda’s knowledge of investors’ information communications and data us developed from unrivaled networking skills that make her a well-known name among CEOs, bankers, government officials and private equity investors both in Indonesia and other countries.


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