Indonesia looks to secure limited trade deal with US after Washington extends its GSP access
- Deputy foreign affairs minister Mahendra Siregar says the potential agreement could double trade value between the countries to US$60 billion in five years
- The proposal comes after Washington confirmed Jakarta was still eligible for Generalised System of Preferences status, a preferential tariff agreement
The new agreement could double trade value between the countries to US$60 billion in five years’ time, deputy foreign affairs minister Mahendra Siregar told This Week in Asia.
“We hope to further our discussion with the US about how to utilise Indonesia’s Generalised System of Preferences (GSP) status, and also to talk about a trade agreement that is more permanent and broader,” he said.
Under the GSP trade preference programme, 3,500 products from 119 designated beneficiary countries and territories are allowed duty-free and quota-free entry into the US. The Office of the United States Trade Representative (USTR) on October 30 confirmed that it had closed its review of Indonesia’s GSP eligibility “with no loss of benefits”.
Siregar added that while Washington had not yet agreed to a discussion over the trade deal, Jakarta had “received positive signs from the US”. He emphasised that instead of Indonesia proposing talks over a “much more time-consuming and complex free trade agreement” with the world’s largest economy, “we are seeking to have a discussion about a limited trade deal, which is more simple and focused”.