November 2, 2020, 07.47 PM

JAKARTA, KOMPAS.com – The US government recently approved a Generalized System of Preferences (GSP) facility extension for Indonesia, and hopes are high that bilateral trade will improve.

Indonesia’s Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan said the GSP facility for Indonesia will help to bolster Indonesian exports to the USA amid a global slowdown in international trade.

To further both countries’ commitment to improving economic and trade relations, the Indonesian government will propose a Limited Trade Deal (LTD) with the US government.

Read also: Indonesia Lures More US Companies during US Secretary of State Pompeo’s Visit

“The LTD covers the scope of trade, investment as well as information, communication, and technology. The objective with it is to increase bilateral trade to up to $60 billion by 2024.”

The announcement of the US Trade Representative’s GSP extension for Indonesia came a few days after US Secretary of State Mike Pompeo sat down with Indonesian President Joko ‘Jokowi’ Widodo on October 29.

Indonesia’s Foreign Minister Retno Marsudi said that the GSP facility for Indonesia was part of several intensive diplomatic discussions that the Indonesian government had recently conducted.

Read also: US Secretary of State Mike Pompeo to Visit Indonesia Next Week

“Indonesia’s GSP facility is just one proof of the strong partnership between the US and Indonesia which will have a positive impact on the business sector of both nations.” 

The GSP facility was unilaterally implemented by the US government in 1974 and removes duties on a wide range of goods sourced from developing countries.

Indonesia first obtained its GSP status in 1980. According to the US International Trade Commission, Indonesian exports to the USA using the GSP facility in 2019 totaled $2.61 billion encompassing 13.1 percent of Indonesia’s total exports to the US valued at $20.1 billion.

Read also: Indonesia’s Trade Ministry: Businesses Must ‘Go Virtual’ in Its Marketing Strategy

The GSP facility was used on 729 types of goods out of the 3,572 goods subject to GSP preferential tariffs.

From January to August 2020, Indonesian exports to the USA using the GSP facility amounted to $1.87 billion, up 10.6 percent year on year.

Currently, Indonesian exports to the USA using the GSP facility ranks second in the US after Thailand with $2.6 billion in GSP exports.

(Writer: Ade Miranti Karunia | Editor: Yoga Sukmana)

Source: https://money.kompas.com/read/2020/11/01/203000626/as-perpanjang-fasilitas-gsp-ri-luhut-optimis-kinerja-ekspor-meningkat 

Dapatkan update berita pilihan dan breaking news setiap hari dari Kompas.com. Mari bergabung di Grup Telegram "Kompas.com News Update", caranya klik link https://t.me/kompascomupdate, kemudian join. Anda harus install aplikasi Telegram terlebih dulu di ponsel.



Recommendation
Comment wisely and responsibly. Comments are entirely the responsibility of the commentator as regulated in the ITE Law
Report
Thank You! We have received your report. We will remove comments that conflict with the Community Guidelines and the ITE Law.

More Headlines

News
August 16, 2022, 01.24 PM

UN Envoy Makes First Visit to Myanmar

News
August 15, 2022, 09.06 PM

Myanmar Court Sentences Suu Kyi to 6 Years

News
August 12, 2022, 04.41 PM

Researchers Warn of Melting Antarctic Ice Sheet

Close Ads