JAKARTA: Indonesia announced a spate of concessions for United States imports on Tuesday (Apr 8), including reducing taxes on electronic goods and steel, ahead of trade negotiations with Washington over President Donald Trump’s sweeping tariffs.
Southeast Asia’s biggest economy will send a high-level delegation to the US next week seeking a deal to ease the impact of a 32 per cent tariff due to take effect on Wednesday.
Indonesia plans to buy liquefied petroleum gas, liquefied natural gas and soybeans from the US as part of the negotiation efforts, said chief economic minister Airlangga Hartarto, who will lead Indonesia’s delegation to the US.
He was speaking at a gathering attended by President Prabowo Subianto, the country’s top ministers, the Bank Indonesia governor, the financial authority chief, and businesses to discuss how to respond to US tariffs.
Airlangga said the impact of Trump’s tariffs on Indonesia would not be as bad as compared to Vietnam, given Hanoi’s reliance on the US market.
“Indonesia’s US exports account for just 2.2 per cent of our GDP … So we can withstand the (tariff) impact. The US is not our only market … Surely we can tap into other markets outside the US,” Airlangga said, as quoted by news outlet Jakarta Globe.
Expanding on other efforts, Finance Minister Sri Mulyani Indrawati said Indonesia would lower import taxes on steel, mining products and health equipment from the US to 0 per cent to 5 per cent from rates of 5 to 10 per cent.
She also said Indonesia will lower the import tax for electronics, mobile phones and laptops from any country to 0.5 per cent from 2.5 per cent.
https://www.channelnewsasia.com/business/indonesia-announces-trade-concessions-us-ahead-talks-5051601
