Indonesia and the U.S. have reached an agreement to reduce import tariffs on Indonesian products entering the U.S. from 32 percent to 19 percent, while U.S. exports to Indonesia will be exempt from tariff and non-tariff barriers.
"It means there is potential for more foreign products to enter Indonesia. Thus, we must strengthen the resilience of our industries so that the products remain competitive," he told the press at the Ministry of Manpower office in Jakarta on Tuesday.
According to Yassierli, the deal can also encourage Indonesian products to expand their presence in the domestic market. He believes this can be supported by the government's strategies within national priority programs.
In this regard, he confirmed that the Ministry of Manpower will focus on the national productivity movement.
"We will focus on companies that really need interventions related to productivity. This is one of the ways to help our domestic companies become competitive," the minister remarked.
Coordinating Minister for Economic Affairs Airlangga Hartarto earlier stated that the agreed reciprocal tariff reduction also offers strategic benefits for Indonesia.
Hartarto stated that the benefits include maintaining economic growth, ensuring food security, and stabilizing employment by protecting up to one million workers dependent on labor-intensive industries.
Furthermore, the agreement is expected to strengthen the competitiveness of Indonesian products in the global markets, such as palm oil, which is becoming more competitive due to growing demand in the US and European markets.
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Translator: Arnidhya Nur, Raka Adji
Editor: Azis Kurmala
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