Tariff negotiations with US are entering the final stage: Minister

Jakarta (ANTARA) - The tariff negotiation process between Indonesia and the United States (US) is now entering the final stages, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.

He said negotiations to exempt Indonesia's key commodities from tariffs are targeted for completion this year.

"We have discussed almost all the texts, and we have also sent a team to the US. We just need to finalize the legal drafting on both sides," he said at the 13th US-Indonesia Investment Summit in Jakarta on Monday.

Hartarto confirmed there were no objections from other countries regarding the special tariff agreement, including the UK.

"There are no objections; I have spoken with the UK. But of course, if we provide facilities to one country, other countries will also want them; that is normal," he continued.

He added that Indonesia continues to uphold various trade agreements, such as the Comprehensive Economic Partnership Agreements (CEPA) with the European Union, Canada, and China.

This approach, he said, allows trade relations to be managed fairly without causing friction.

Under the agreement with the US, several Indonesian commodities not produced in the United States will be subject to zero percent tariffs.

These commodities include crude palm oil (CPO), rubber, tea, coffee, and other rubber-based products. Meanwhile, tariffs on textiles and footwear remain under discussion.

Earlier, the US had agreed to reduce tariffs on several Indonesian products from the initial threat of 32 percent to 19 percent.

As part of the deal, Indonesia also committed to increasing imports from the US to help balance the trade relationship between the two countries.

Indonesia has pledged to import energy products from the US worth up to US$15 billion, while agricultural imports from the US are targeted to reach US$4.5 billion.

Alongside trade agreements, the commitments also include investments in Indonesia and a blue ammonia facility in the US, with a total value of US$10 billion.

With the overall trade and investment package, Hartarto said he is confident that the trade balance between the two countries will be restored.