“All points have been agreed upon by both parties,” he stressed at the Presidential Palace complex in Jakarta on Wednesday in response to the official joint statement released by the White House.
Addressing concerns that the United States has asked Indonesia to amend its labor regulations, Hartarto denied any such changes.
“All of these issues have been discussed, and no changes are being made. They only asked us to comply with regulations — which we already do,” he informed.
On the topic of data protection, Hartarto pointed out that cross-border data transfer mechanisms are already in place, based on the principle of state responsibility.
According to the White House release, the US and Indonesia have agreed on a framework to negotiate an agreement on reciprocal trade, which is aimed at strengthening their long-standing bilateral economic relationship.
The provisions of the agreement include Indonesia eliminating up to 99 percent of tariff barriers on US industrial and agricultural products. Meanwhile, the US will lower tariffs on goods from Indonesia to 19 percent.
Both nations have also committed to breaking down non-tariff barriers such as exemptions on local content requirements and recognition of US vehicle standards, Food and Drug Administration (FDA) certificates for medical devices, and food regulatory practices.
In addition, Indonesia has agreed to ease import-export regulations, particularly for US digital, food, and agricultural products, and facilitate cross-border data flows.
In labor matters, Indonesia has committed to adopting and implementing a forced labor import ban and removing provisions that restrict workers and unions from exercising freedom of association and collective bargaining rights.
The country will also remove restrictions on critical mineral exports to the US. Further, the two countries will intensify economic cooperation and supply chain security to address unfair trade practices by third countries.
Additionally, the agreement highlights commercial deals in the areas of agriculture, aerospace, and energy, which will further boost US exports to Indonesia.
More negotiations to finalize the trade agreement are expected in the coming weeks.
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Translator: Andi/Genta, Kuntum Khaira Riswan
Editor: Aditya Eko Sigit Wicaksono
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