(Jakarta, 25th) — The chairman of Indonesia’s chamber of commerce told Reuters that a trade agreement currently being discussed between Indonesia and the United States could significantly expand bilateral trade between the two countries.
Anindya Bakrie, chairman of the Indonesian Chamber of Commerce, said in an interview during the World Economic Forum in Davos, Switzerland, that the agreement is expected to be finalized next month. At that point, the trade volume between the US and Indonesia, Southeast Asia’s largest economy, could increase fourfold from the current annual figure of around US$40 billion (about S$51.4 billion).
“Trade will be more balanced, but the total trade volume may increase three to four times.”
Indonesia’s chief negotiator, Coordinating Minister for Economic Affairs Airlangga, said last December that Indonesia and the US had reached consensus on all substantive issues in tariff negotiations, and the agreement could be signed by the end of January this year.
At the time, Airlangga said the contents of the draft agreement were largely consistent with the framework reached by the two countries’ leaders in July last year. According to the deal at that time, Indonesia would eliminate tariffs on more than 99% of American goods and remove non-tariff barriers, in exchange for the US reducing tariffs on Indonesian goods from a previously threatened 32% to 19%. Indonesia also agreed to purchase around US$19 billion worth of US goods, including 50 Boeing airplanes and agricultural products.
“Trade will be more balanced, but the total trade volume may increase three to four times.”
Indonesia’s chief negotiator, Coordinating Minister for Economic Affairs Airlangga, said last December that Indonesia and the US had reached consensus on all substantive issues in tariff negotiations, and the agreement could be signed by the end of January this year.
At the time, Airlangga said the contents of the draft agreement were largely consistent with the framework reached by the two countries’ leaders in July last year. According to the deal at that time, Indonesia would eliminate tariffs on more than 99% of American goods and remove non-tariff barriers, in exchange for the US reducing tariffs on Indonesian goods from a previously threatened 32% to 19%. Indonesia also agreed to purchase around US$19 billion worth of US goods, including 50 Boeing airplanes and agricultural products.