Indonesia says it aims to finalise tariff negotiations with the United States by the end of the year and will send a delegation to Washington D.C. to advance the talks. The announcement followed a call between Indonesian negotiator Airlangga and U.S. Trade Representative Jamieson Greer. A U.S. official warned the deal could collapse amid alleged backtracking, while Jakarta says negotiations are ongoing and require harmonising the agreement's language. The U.S. has cut tariffs on Indonesian goods to 19% from 32% after Jakarta agreed to broad tariff eliminations and the removal of non-tariff barriers.
Indonesia Seeks to Conclude Tariff Talks With U.S. By Year-End, Delegation to Visit Washington
Airlangga Hartarto, Indonesia's Coordinating Minister for Economic Affairs, gestures as he talks during an interview with Reuters at his office in Jakarta, Indonesia, June 8, 2023. REUTERS/Ajeng Dinar Ulfiana
JAKARTA, Dec 12 — Indonesia expects to complete tariff negotiations with the United States by the end of the year, its chief negotiator said on Friday, and a delegation will soon travel to Washington D.C. to continue discussions.
The announcement followed a Thursday phone call between Airlangga and U.S. Trade Representative Jamieson Greer about outstanding tariff issues and the final wording of a bilateral agreement.
"We agree to complete what has been agreed upon in the Leaders' Declaration on July 22," Airlangga said at an economic forum.
Current Status and Differences
A U.S. official, speaking on condition of anonymity, told Reuters the trade deal was at risk of collapse, alleging Jakarta has backtracked on several previously agreed commitments. Indonesian officials countered that talks with Washington remain ongoing and that the negotiations' "dynamics" are normal. They said harmonising the precise language of the pact is necessary to finalise the agreement.
Tariff Concessions
The United States has reduced a tariff on Indonesian products to 19% from 32% after Jakarta agreed to eliminate tariffs on more than 99% of U.S. goods and to remove non-tariff barriers affecting American firms. Negotiators are now focused on final text and technical harmonisation to implement those commitments.
The next delegation trip to Washington is expected to address outstanding language issues and work toward a year-end completion date.
(Reporting by Stefanno Sulaiman, Ananda Teresia and Bernadette Christina; Editing by David Stanway)
