Home News Indonesia’s Trade Minister Flies to Washington to Completed GSP

Indonesia’s Trade Minister Flies to Washington to Completed GSP

minister of trade, Agus Suparmanto is committed to improve bilateral trade with the United States by completed the Generalized System of Preferences - Photo by Trade Ministry Office

JAKARTA (TheInsiderStories) – Indonesia’ minister of trade, Agus Suparmanto is committed to improve bilateral trade with the United States (US) by completed the Generalized System of Preferences (GSP). He emphasized that America is important partner as a second export destination for the country.

Since Feb. 13 until Feb. 15, the minister in America to meet the US’ government officials and businessmen. Regarding the GSP discussion, he is scheduled to meet with representatives of the US’ trade representative secretary, Robert Lighthizer.

He also will hold a meeting with US – Indonesia Society and several importers in the US. At the meeting, Suparmanto will propose that the two countries creates a road map, which emphasizes a practical approach to enabling trade flows, both goods and services, and the best investment.

“Hopefully, in this visit the remaining issues that are still incomplete related to reinsurance and horticultural product imports can be harmonized immediately and Indonesia can regain preferential tariff facilities that can continue to drive Indonesian exports,” said the minister in an official statement released on Thursday (02/13).

In 2018, the value of Indonesia’ exports that received GSP facilities rose 10 percent from US$1.9 billion to $2.2 billion. While in the January – November 2019 period, the value exports with the GSP facility rose by 20 percent from $2 billion to $2.5 billion compared to the same period the previous year.

He is optimistic that the negotiations regarding the GSP will soon be over. This is considering the preference tariff facility also provides benefits for the US as an importer, who will get quality goods at a cheaper price.

In order to realize the increasing the value of trade between Indonesia and the US worth of $60 billion in the next five years, Suparmanto also plans to hold a number of meetings with US’ businessmen. The minister will also open an opportunities for greater collaboration with the US’ desire to reduce the trade deficit with Indonesia.

“Indonesia sees that trade must be fair and balanced. This can be achieved with intensify collaboration and offer a wide range of products and services with a competitive prices,” he noted.

In 2019, total trade values of the two countries recorded $26.97 billion or decreased by 5.73 percent from the previous year, which was valued at $28.6 billion, with Indonesia’ exports amounting to $17.72 billion and imports $9.25 billion. Thus, Indonesia has a surplus of $8.46 billion.

Indonesia’ main exports to the US include fresh crustaceans, natural rubber, footwear, jerseys, women’s and girl’s clothing, and new pneumatic tires. While, Indonesia’ main import products from the US such as soybean, cotton, wheat, starch flour residues, and non-consumption flour.

Otherwise, total value of US investments in Indonesia in 2019 was recorded at $989.3 million consisting of 788 projects dominated by the mining sector (78 percent). Other sectors electricity, gas and water industry, service industries and others.

Written by Staff Editor, Email: theinsiderstories@gmail.com