Indonesian president expects Generalized System of Preferences to attract U.S. investment

Indonesian president expects Generalized System of Preferences to attract U.S. investment
A plenary cabinet meeting at the State Palace, Jakarta on Monday (November 2, 2020). (RI's Cabinet Secretariat)
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Jakarta (Indonesia Window) – Indonesian President Joko Widodo expects the Generalized System of Preferences (GSP) facility from the United States for Indonesia will be used to recover and increase investment amid the economic pressure caused by the COVID-19 pandemic.

“This is an opportunity. We hope our exports will increase and jump as we have the GSP facility,” the head of state said at the plenary cabinet session at the State Palace, Jakarta on Monday.

The GSP facility enables Indonesian products to enter the U.S. market easier because the import duty tariffs on these goods are eliminated.

The U.S. government announced the extension of the GSP just a day after President Joko Widodo’s meeting with U.S. Secretary of State Mike Pompeo at the Bogor Palace in West Java province on October 29, 2020.

“Because we have this facility, people who want to set up industries, factories, companies in Indonesia will be more interested,” the president said.

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.

Reporting by Indonesia Window

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