JAKARTA, Feb 22 (Bernama) -- Indonesia is seeking assurances that the zero per cent tariff concessions secured under its reciprocal trade deal with the United States(US) will remain intact after Washington introduced a temporary 15 per cent global tariff following a US Supreme Court ruling.
Coordinating Minister for Economic Affairs Airlangga Hartarto said Jakarta has begun consultations with the Office of the United States Trade Representative (USTR) to clarify how the latest US measures would interact with the reciprocal trade agreement signed earlier.
Under the agreement, the US agreed to maintain a 19 per cent tariff rate on Indonesian exports, while selected products were granted zero per cent tariff treatment.
“What we are asking is whether those zero per cent facilities that have already been granted will remain,” he told reporters in Washington on Saturday local time. A video of the interview was uploaded to the Presidential Secretariat’s YouTube account.
Airlangga noted that items granted zero per cent tariffs include agricultural commodities such as coffee and cocoa, as well as product linked to electronic supply chains, crude palm oil (CPO), textiles and footwear.
He explained that the reciprocal agreement would take effect 60 days after signing, during which both countries must complete consultations with their respective institutions.
“This means…that perhaps the US needs to speak with their Congress or the Senate, while Indonesia needs to consult with the DPR (Dewan Permesyuaratan Rakyat). However, yesterday’s decision(the new global tariff) only applies for 150 days, after that they can extend it or amend it with existing regulations.
“For Indonesia, because this agreement is still valid and will become effective in 60 days, we have time. We have coordinated with the USTR and they said there will be a Cabinet decision on their side regarding those who have signed the agreement,” he said.
For US goods entering Indonesia, he said existing tariff arrangements, including zero per cent tariffs on wheat and reduced rates on soybeans, remain unchanged pending implementation of the agreement.
Media reports said US President Donald Trump on Friday announced he would impose a new 10 per cent tariff on nations worldwide under new authorities after the Supreme Court struck down his global import tax campaign.
However, Trump later announced that the rate would be increased to 15 per cent, the maximum level allowed under the law.
Meanwhile, Indonesian Cabinet Secretary Teddy Indra Wijaya said Indonesia is ready for all possibilities and that the government had anticipated various scenarios.
“We have prepared the umbrella before the rain,” he said.
-- BERNAMA
