Institute for Economic and Financial Development researcher Andry Satrio said Indonesia’s exports to the US increased after the US Trade Representative confirmed the addition of a tariff preference instrument to Indonesia under the Generalized System of Preferences (GSP). (USTR) under the Trump administration.
“The GSP extension is a breath of fresh air. It can increase exports in the next five years,” Andry said at a virtual press conference on Sunday (8/11/2020).
GSP is an instrument in the shape of changes in import duty rates unilaterally granted by the US government to developing countries all over the world. This ensures that Indonesian products are free from import duties once they enter the Indonesian market, making it easier for them to compete.
Indonesia’s GSP exports reached $2.61 billion in 2019, in response to statistics from the United States International Trade Commission (USITC). This figure represents 13.1 percent of Indonesia’s total exports to the US, or $20.1 billion.
Meanwhile, in response to data from the Central Statistical Agency (BPS), for the period from January to September 2020, the worth of exports of Indonesian products to the US reached $13.50 billion, accounting for 12.14% of exports. The United States can also be the second largest market after China with a worth of $20.43 billion or 18.37%.
According to Andry, Indonesian products exported to the US mainly include clothing products, clothing, clothing accessories, rubber and footwear.
“In the U.S., Indonesian products compete with Vietnam and Bangladesh,” he said.
However, this relief won’t be felt quickly, provided that Biden will experience a leadership transition period from Trump, which within the case of the administration will take about 2.5 months.
Moreover, on the Senate side, Republican Party seats still have a bonus over Democrats, which can mean that Biden’s economic policy won’t be as smooth as expected.
Source : https://www.cnbcindonesia.com/news/20201108190830-4-200224/joe-biden-presiden-ini-ramalan-ekspor-ri-ke-as
