Jakarta (ANTARA) - The government is pushing for the elimination of a reciprocal tariff imposed by the United States on Indonesian furniture and craft products, a minister said.

Trade Minister Budi Santoso explained that all furniture products entering the US are subject to a sectoral tariff of 3 percent. This would surge to 35 percent if the US's 32 percent reciprocal tariff were to be imposed.

"That's why we're asking for the reciprocal tariff to be eliminated," he explained in Jakarta on Wednesday.

Currently, during the 90-day suspension of the US reciprocal tariff, Indonesian furniture products face a baseline 10 percent plus the 3 percent sectoral tariff, he added.

According to Santoso, the government is negotiating for an easing of the reciprocal tariff. The value of Indonesia's furniture and craft exports to the US currently stands at 1.64 billion US dollars.

The government is also working on deregulating exports and imports to support the ease of doing business.

This deregulation policy is expected to boost exports, including those of furniture and craft products, and elevate Indonesia's position as a furniture and craft exporter.

The country is currently ranked 20th globally, with the total value of its furniture and craft exports pegged at 2.43 billion US dollars.

"If possible, we want to be among the top 10 furniture exporters," Santoso stated.

As part of drafting the deregulation policy, the Ministry of Trade has held discussions with associations and the Ministry of Forestry so that wood derivative products, such as furniture and crafts, do not require V-Legal documents (wood product export licenses).

According to the minister, these documents should only be mandated for countries that specifically require them, such as members of the European Union.


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