Jakarta (Indonesia Window) – Indonesia will propose a negotiation on Limited Trade Deal (LTD) with the United States.
In a statement received here on Sunday, Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan said LTD confirmed the commitment of the Indonesian government to continue optimizing the high potentials for cooperation in the economic and trade sectors with the U.S.
“LTD, which will cover trade, investment, as well as the information, communication and technology sectors, is expected to help boost two-way trade between Indonesia and the U.S. to reach 60 billion U.S. dollars by 2024,” he pointed out.
The high intensity of cooperation in the trade sector between the two countries is also an effective catalyst for increasing investment flows between Indonesia and the U.S.
Meanwhile, the U.S. government, through the United States Trade Representative (USTR) has officially issued a decision to extend the Generalized System of Preferences (GSP) facility for Indonesia.
GSP is a trade facility of import duty tariff exemption that has been given unilaterally by the U.S. Government to developing countries around the world since 1974.
Indonesia first received the U.S.’ GSP facility in 1980.
Based on statistical data from the United States International Trade Commission (USITC), in 2019 Indonesia’s exports under GSP reached 2.61 billion U.S. dollars.
That figure is equivalent to 13.1 percent of Indonesia’s total exports to the U.S. valued at 20.1 billion U.S. dollars.
Indonesia’s exports with GSP facility in 2019 came from 729 products from a total of 3,572 products that received GSP tariff preferences.
Until August 2020, the export value of Indonesia’s GSP to the U.S. was recorded at 1.87 billion U.S. dollars, an increase of 10.6 percent compared to that in the same period last year.
Indonesia is currently the second largest GSP exporting country in the U.S. after Thailand (2.6 billion U.S. dollars).
Reporting by Indonesia Window