Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso stated on July 18 that Indonesia is negotiating with the United States over details of their recent trade agreement. Under the pact, the US will reduce tariffs on Indonesian goods from 32% to 19%, but Jakarta is seeking additional exemptions--specifically requesting duty-free access for cocoa, rubber, crude palm oil, and nickel.
Susiwijono Moegiarso added that US technology products will be exempt from Indonesia's local content requirements, which mandate the use of domestically manufactured components. He confirmed that Indonesia will also purchase aircraft from Boeing for Garuda Indonesia, and Pertamina will import energy from the United States, but it is subject to commercial review. Nearly all American goods exported to Indonesia will enter duty-free except alcohol and pork, with certain products also exempt from import quotas.
Written by Cora Ji, jiruyan@mysteel.com
