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General authority of Saudi Arabia raised import duty on 575 of Indonesian products, said trade ministry on Monday (06/22) - Photo by Japantimes

JAKARTA (TheInsiderStories) – General authority of Saudi Arabia raised import duty on 575 of Indonesian products, said trade ministry on Monday (06/22). The trade partner need to raises the import duties due to falling world oil prices and to optimize the tax revenues.

The import duties included animal and food products; ingredient chemical, plastic and derivatives; leather goods and their derivatives; straw products; paper products and
its derivatives; carpets, clothing, fabrics, head covering threads, and shoes; marble products and ceramics, glass, iron, nickel, copper, aluminum, zinc and all its products; machinery and products machinery, electrical equipment and parts, some automotive products and spare parts; product optical equipment, spectacle frames, some furniture products, some game products, and some manufactured products.

Minister of trade, Agus Suparmanto asserted, his ministry will immediately develop anticipatory steps to maintain the country’ export performances caused the decision has the potential to suppress exports to Saudi’ partners, including Indonesia, especially in the middle of the COVID-19 pandemic which has hit economies of countries in the world. Another step that can be done, he noted is through bilateral cooperation. 

“We will also seek bilateral approaches with trading partner countries so Indonesian products are competitive in export destinations. In this case, we will see the opportunity to work with the Gulf Cooperation Council. We will make every effort to continue maintaining Indonesia’s export performance, ” the minister explained in an official statement. 

While, the director general, Kasan stated, the increase Saudi’ import duties will affect Indonesia’ non-oil and gas export like automotive products with import duty increased from 5 to 7 percent, paper products and their derivatives rose from 5 percent to 8-10
percent, iron, steel, and iron or steel goods up from 5 percent to 8 – 20 percent. The value of Indonesia’ exports to Saudi for these products reaches more than US$624 million.

In the period from January to April 2020, total trade of Indonesia and Saudi recorded worth of $1.55 billion. In 2019, the total trade between the two countries of $5.07 billion and at 2018 was $6.13 billion. In the same period, Indonesia’ exports to Saudi amounted to $519.86 million. In 2019 with total amount $1.50 billion and in 2018 were $1.22 billion.

Indonesia’ trade balance from January to May 2020 recorded a surplus of $4.31
billion with the largest contribution coming from non-oil and gas surpluses worth $7.67 billion. On That period, Indonesia’ exports reached $64.46 billion with the value of non-oil exports in the amount of USD 60.97 million

The main export products of Indonesia to Saudi Arabia covering automotive, fish products, palm and its derivatives, wood products, rubber, and paper products.

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