Sign up | Log in



Home  >>   Daily News  >>   Indonesia  >>Trade  >> Exports to US to grow as tariff cut extended
NEW UPDATES Asean Affairs  3 July 2015  

Exports to US to grow as tariff cut extended

Indonesia is expecting to boost its exports to the US as the world’s biggest economy has recently renewed tariff reductions on several products under its generalized system of preference (GSP).

US President Barack Obama signed on Monday legislation which provides a legal basis for an import tariff reduction on several products including some from Indonesia.

The legislation is a renewal of a tariff system that expired nearly two years ago.

Gusmardi Bustami, a special staffer to the trade minister, said Tuesday that with the signing of the legislation, the shipment of manufactured goods was expected to rise between 10 percent and 20 percent from around US$1.8 billion seen last year.

“That measure will certainly give a major boost to our exports to the US, particularly at this time when demand douses across the globe. This will help our producers tap into the market where economic recovery is underway,” he told The Jakarta Post in a phone interview.

Introduced in 1976, the tariff system has eased import duties on 4,800 items that are mostly produced in 122 developing and least-developed nations, thereby giving advantages for the country’s finished goods producers as well as customers.

Indonesia was the fourth biggest beneficiary of US GSP after India, Thailand and Brazil although it still lagged behind its peers in utilizing the facility.

The total value of goods that should have been covered by the facility in 2014 was $18.7 billion and Indonesia’s shipments accounted for $1.7 billion, or 8.8 percent, of the overall figure.

Topping the list of Indonesian products that have benefited from the GSP are radial tires, wood products, rubber gloves, musical instruments, tires, porcelain, palm oil products, jewelry and footwear, according to data from the Trade Ministry.

The facility expired at the end of July 2013 and attempts to renew it were not easy following a lengthy political process in US Congress.

Ultimately, President Obama signed the legislation which rules the GSP is slated to take effect on July 29 and last until Dec. 31, 2017.

Gusmardi said that in line with the goal to raise export value, Indonesia would also push diversification of products eligible for GSP to 1,000 items from 652 items previously with glasses, food and beverages included in the line-up.

Indonesian Footwear Association (Aprisindo) chairman Eddy Widjanarko welcomed the US move, saying that the approval from the US government would provide Indonesian exporters with certainty about the sustainability of the tariff reduction.

He also said that without the discount, US importers would pass the duties directly to Indonesian exporters, thereby forcing them to lower their prices.

“But, the GSP will not really help push up our exports to the US or enhance the competitiveness of our footwear there,” Eddy said.

Indonesia’s exports to the US amounted to $19.4 billion last year, up slightly by 0.8 percent from 2013.

From January to May, sales of goods to the country reached $6.4 billion, down 0.84 percent from the past year.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           July 3 , 2015 Subsribe Now !
• Solar energy project to benefit the poor Subcribe: Asean Affairs Global Magazine
• Exports to US to grow as tariff cut extended
• M’sians, S’poreans dominate tourist arrivals in May
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Twin tower skyscraper proposed for capital
• City officials confirm DMCI got all permits to build Torre de Manila
Asean Analysis                   June 26, 2015
• Asean Analysis June 26, 2015
U.S. Companies Engage Myanmar on Reforms, Capacity and Infrastructure
Advertise Your Brand

Asean Stock Watch  July 2,   2015
• Asean Stock Watch-July  2, 2015
The Biweekly Update
• The Biweekly Update June 26, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand