VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto positively welcomes the revocation of Indonesia’s developing economy status that is imposed by the United States. After attending Limited Work Meeting on the impacts of the COVID-19 (Coronavirus) at the Presidential Office in Jakarta on Tuesday (Feb 25), Minister Airlangga said that Indonesia has become member of the G20 for a long time, which is a group of countries having the largest economies in the world. According to Airlangga, the revocation of Indonesia’s developing economy status will only have slight impact on the export incentive facility, namely the General System of Preferences (GSP) implemented by the US Government, considering most of Indonesian exports to the US have complied with the tariff regulation applied in the country.

"The revocation of Indonesia’s developing economy status is in accordance with several criteria. Indonesia is no longer part of emerging markets. Indonesia’s economy has been more advanced and it has been acknowledged by the US Government. The GSP (General System of Preferences) is still being processed. Being a less developed country means that Indonesia has higher requirements. Our export GSP to the US is only 20 percent and the other 80 percent has complied with the applicable tariff," said Airlangga.

The United States Trade Representative has revoked Indonesia’s developing economy status and Indonesia is now recognized as a developed country in the international trade. In addition to Indonesia, the revocation of developing economy status also applies to other countries namely China, Brazil, India, and South Africa. The revocation of Indonesia’s developing economy status makes Indonesia no longer eligible to receive Special Differential Treatment for export and import activities or known as Generalized System of Preferences (GSP)// (VOI/Andy/AHM)