Indonesia Revoked from Developing Countries, Exports Remain Safe

Indonesian President Joko Widodo and US President Donald Trump (photo: Special)

Jakarta, MINA – Indonesian Coordinating Minister for the Economy Airlangga Hartarto is not worried that Indonesia will be expelled by the United States from the list of developing countries. According to him, these conditions make Indonesian products competitive.

“Not necessarily, we can be competitive. No problem (removed from the list of developing countries),” Airlangga said on Jakarta, on Monday, thus quoted from Liputan6.

Airlangga said Indonesia’s exit from the list of developing countries did not make the cost of exporting goods go up. Because, there has been a previous bilateral agreement.

“If there is an export-import fee, there is an agreement being processed. It can be resolved bilaterally. Well we are optimistic, now we have a Generalized System of Preferences (GSP) of only 20 percent,” he explained.

The former Minister of Industry added Indonesia should not need to worry but should be proud of the US statement. “Instead we are proud,” he said.

Previously, the United States (US) removed Indonesia from the list of developing countries. Indonesia is considered a developed country.

Besides Indonesia, a number of countries were also excluded from the list, such as China, Brazil, India, and South Africa.

Responding to this, Deputy Chairman of the International Relations Division of Indonesia Trade Office (Kadin) Shinta W. Kamdani said the US policy would certainly have an impact on Indonesia. Especially, in the case of trade between Indonesia and the US.

“If this is true, it will potentially have an impact on, first, the benefits of the US GPS incentives for Indonesian export products because based on the US internal regulations regarding GSP, GSP facilities are only given to countries they consider LDC’s and developing countries ,” she said.

“With the redesignation of Indonesia as a developed country by the US, logically Indonesia is no longer eligible as a GSP recipient regardless of the final results of the two ongoing GSP reviews of Indonesia,” she continued. (T/RE1)

Mi’raj News Agency (MINA)