Indonesia to offer digital market in Limited Trade Deal with U.S.

Jakarta (Indonesia Window) – Indonesia will offer its digital market in the negotiation of Limited Trade Deal (LTD) with the United States.

“In the LTD, Indonesia will offer a lucrative market on digital platforms, and the United States is very well welcomed,” Indonesian Ambassador to the U.S. Muhammad Lutfi said in a virtual press conference on Monday (Nov 2).

He underscored that the development of Indonesia’s digital market was very good and profitable.

A social media management agency, Hootsuite, recorded that out of 272.1 million people in Indonesia, 338.2 million have mobiles or 124 percent of the total population.

Of the number, 175.4 million are internet users, and 160 million people actively use social media.

“Digital technology also helps improve the quality of life of people in Indonesia, especially during the pandemic,” said the ambassador, adding that Indonesia also wants to get an efficient market from the U.S.

“Network (internet) is the main prerequisite for survival in the future,” Ambassador Lutfi said.

He believed that the LTD process with the U.S. will run smoothly because the U.S. government, through the United States Trade Representative (USTR), on October 30, 2020 issued a decision to extend the Generalized System of Preferences (GSP) facility for Indonesia.

The Generalized System of Preferences provides duty-free for goods from designated recipient countries.

“As the GSP has been extended, LTD should be simpler,” Ambassador Lutfi said.

According to him, the GSP facility also aims to improve the U.S.’ trade with Indonesia.

“With a total population (of the two countries) of up to 600-700 million people, the reciprocal trade value reached 29 billion U.S. dollars,” the ambassador pointed out.

With LTD, that value should be much greater, he added.

The ambassador explained that before the end of November this year, he would write to USTR to follow up on the LTD process, which will also involve the Coordinating Minister for Maritime Affairs and Investment, the Minister of Trade, the Coordinating Minister for the Economy, and the Minister of State-owned Enterprises.

“I will make sure that the process runs as quickly and smoothly as possible for the interests of Indonesia and the United States,” Ambassador Lutfi said.

Reporting by Indonesia Window