VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The generalized system of preference (GSP) facility for Indonesian export products, which has been officially extended by the United States, can be a way to explore negotiations on limited trade agreements (LTD) between the two countries. 

The Indonesian Ambassador conveyed this to the United States, Muhammad Lutfi, during a virtual media briefing on Monday night. 

"So the LTD (Limited Trade Deal) is the entrance to GSP. Because when you are in GSP, going to the LTD is getting simpler than the negotiations. The parameters are, it will be much easier with the GSP," said Ambassador Lutfi. 

According to Lutfi, the government is targeting an increase in the volume of trade between Indonesia and the US to double, or worth $60 billion, in the next five years, which is expected to be achieved through the limited trade agreement (LTD). 

In exploring the negotiation of LTD, Lutfi said that his party prioritizes the 575 scheme, which means five main export products, seven potential export products, and five strategic products. 

The five main export products are clothing, rubber products, footwear, electronic goods, and furniture. 

Meanwhile, seven potential products include wood products, travel goods, chemical products, especially those based on palm oil, jewelry, toys, artificial hair, and paper products.

Machinery, plastic products, automotive spare parts, optical and medical devices, and organic chemical products are the five strategic products that are included in the scheme. 

"I feel confident that this 5 7 5 is more practical, makes more sense, and this is not a very difficult process, and we are targeting growth to occur," said Lutfi. 

Not only related to trade in goods, he explained that LTD could also open up investment potential in cooperation between the two countries, including in the digital sector, where according to him Indonesia was an attractive market for the US in this field. 

"If we open our digital market, we can bring in investment with our digital platform. Our digital market has a very good trend, and we will make our market a world-class market with the hope that there will be improvements in it," he explained. 

Previously, the Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan said that Indonesia would propose the implementation of the Limited Trade Deal (LTD) negotiations between Indonesia and the US, in order to emphasize Indonesia's commitment to continue optimizing the high potential of economic and trade cooperation. both countries.

The Generalized System of Preferences or GSP is a trade facility in the form of exemption from import duty that has been given unilaterally by the United States Government through the United States Trade Representative (USTR) to developing countries in the world since 1974. 

Indonesia received the GSP facility from the US for the first time in 1980, according to the official website of the Indonesian Ministry of Foreign Affairs. (Antaranews)