ASEAN KEY DESTINATIONS
US expects to be involved in RI’s deregulation policy, says Trade Ministry
The US praised Indonesia’s new policies of deregulation and expressed an interest in getting involved with drafting phase 2 and phase 3 of the economic policy packages, an executive in the Trade Ministry stated.
Indonesia and US representatives talked about the issues in the Trade and Investment Framework Agreement (TIFA), which was discussed at the Trade and Investment Council (TIC) held Sept. 18-19 in Washington, DC. The United State Trade Representative (USTR) hosted the meeting.
“The US government expects to have an opportunity to give input and recommendations so that the objectives of the policies can be optimally achieved,” director general for International Trade Cooperation at the Trade Ministry Bachrul Chairi stated, as quoted by tempo.co.
Those policies, he added, could significantly boost the flow of goods from Indonesia to the US and vice versa.
In the forum, Indonesia brought up the sustainable palm oil issue, and expected the US government to make a decision on Indonesia’s biodiesel status related to its gas emissions. Indonesia also expected to receive the "eligible product" status for its biodiesel, plywood and wiring harness.
Bachrul further said that Indonesia demanded that the US government support its action plan on Intellectual Property Rights, acknowledge Indonesia's timber legality verification system (SVLK) and support Indonesia’s effort to meet the US’ standard on illegal, unreported and unregulated fishing.
Meanwhile, the US authorities were perplexed by the restrictions in Indonesia’s 4G Long Term Evolution and mobile technology market, since there is a minimum local content requirement for imported products to enter the market.
They also complained about the Data Local Center requirement, and argued that such a policy may hamper Indonesia’s investment climate. In order to run and provide global services, a data center needs to be big enough in terms of economic scale.
Lastly, Bachruel said, the US trade authority also expressed their concern on the halal requirement and would intensify dialogue to solve this problem.
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