VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The Indonesian Minister of Foreign Affairs, Retno Marsudi emphasized that there was no trade war between Indonesia and the United States (US). The statement was made by Foreign Minister Retno, after holding a bilateral meeting with US Secretary of State, Michael Richard Pompeo in Jakarta, Saturday, August 4, 2018. According to Retno, currently what is happening is a trade war between the US affecting all countries in the world including Indonesia. The absence of a trade war between the US and Indonesia, according to the Indonesian Foreign Minister, was seen from the visit of the Indonesian Minister of Trade Enggariasto Lukita to the United States to meet with US Trade Minister Wilbur Ross, US trade representative (USTR), and business circles.

“When the Indonesian Minister of Trade visited the United States, he certainly met with his partners. His partners are the Minister of Trade of the United States and also USTR, and also with businesses there. The essence of the visit is one, strengthening trade and investment, the second is pressing the barrier issues, friends not to be trapped in the sentence that there is a trade war between Indonesia and America. We have no trade war with America. What is happening now is a trade war between the United States and China. But I said earlier that the situation and conditions of trade between America and China would certainly affect all countries in the world,” Retno Marsudi said.

On the same occasion, the Indonesian Ambassador to the US Budi Bowoleksono said the results of the visit of the Indonesian Minister of Trade were positive because there was potential to increase trade growth between the two countries. However, according to Ambassador Budi there are still trade barriers between the two countries. He said, one of the obstacles discussed was the World Trade Organization (WTO) policy in agriculture. The policy requires its member countries to liberalize the agricultural sector while Indonesia does not fully liberalize the agricultural sector. Besides that another obstacle that also arises is related to inspection of seafood products in the US. As for the US Generalized System of Preferences (GSP) which is rumored to be revoked, Ambassador Budi said it was still under discussion. According to Ambassador Budi, GSP is a facility provided by the US to Indonesia. This facility is not a right. GSP is a facility to help developing countries grow economically. But this facility has requirements. That is, the removal of market access barriers to US products in Indonesia. At present the US is indeed conducting a review of GSP facilities and the process is still ongoing. (VOI / Rezha/AHM)