Minister says that the new US tariff exemptions will stimulate growth in Indonesia.
Indonesia's chief economist said on Friday that a 10% additional 'duty' imposed by the United States could stimulate economic growth, along with exemptions expected 'for certain 'key products.
Washington announced this week that the U.S. trade representative has proposed tariffs up to 12.5% for imports from 60 different countries, after concluding they failed to reduce trade in goods produced with forced labour. It proposed 10% for Indonesia, which was lower than many of its competitors.
Airlangga Hartarto, the chief economic affairs minister of Indonesia, made this statement after meeting with USTR Ambassador Jamieson Greer at OECD meetings in Paris.
Airlangga stated that Indonesia's request to exclude 18 products from the Section 301 investigation was likely granted without giving details.
Airlangga stated that "these strategic measures will serve as an enormous economic stimulus for Indonesian industry, reduce the export costs and increase the competition of our key commodities on U.S. domestic market."
He is expecting?copper-cathode exports by Freeport Indonesia, which is a mining firm controlled by U.S. miner Freeport McMoran, but whose majority shareholder?is the Indonesian Government, to be exempted under U.S. tariff Section 232.
The USTR announced its decision ahead of the expiration on July 24 of a temporary 10% tariff?imposed by the administration of President Donald Trump in February?20. That was the day that the Supreme Court had struck down Trump’s tariffs under International Emergency Economic Powers Act.
The United States signed an agreement on reciprocal tariffs with?Indonesia ahead of a court ruling scheduled for February 20. However, neither country has ratified it. (Reporting and editing by John Mair, Ananda teresia and Stefanno Sulaiman)
(source: Reuters)
