The United States Trade Representative Office removed Indonesia from the list of developing countries. That is, according to the US Indonesia has developed country status so that it will no longer get preferential treatment in trade.
At least, that status makes Indonesia not get the benefit of US Generalized System of Preferences (GSP) incentives for export products.
Because, based on internal US regulations related to GSP, the facility is only given to countries that they consider to be LDC’s and developing countries.
Minister of Finance Sri Mulayani relaxed about this. Because, he said, only a small proportion of Indonesia’s export commodities enjoyed the facility.
“Actually the announcement was more of a counter feeling duty. So far, only 5 Indonesian export commodities have enjoyed it, so it’s not too big,” Sri Mulyani said, Monday (2/24/2020).
Sri Mulyani emphasized that she was not in the least worried about Indonesia’s new status. Moreover, Indonesia’s current income is at the middle level.
“Indonesia has been middle income so far, so it must continue to improve its competitive aspects. This is the concern of the president.”
Kadin is worried
However, Chairperson of the Indonesian Chamber of Commerce and Industry (Kadin) Rosan Roeslani acknowledged being somewhat afraid of Indonesia’s new status.
Because a number of Indonesian entrepreneurs who often export to the US are still absorbed in enjoying incentives in the form of GSP from the land of Pakde Sam.
“But we hope there is government lobbying so that the GSP can be maintained or half maintained or changed in terms of tariffs,” Rosan said.
He acknowledged, entrepreneurs had actually anticipated changes in status. But he admitted that he did not expect the US to include Indonesia as a developed country.
Regarding the status of Indonesia as a developed country, Rosan answered doubtfully, “Yes, it needs to be seen further.”