RI Deputy Trade Minister calls for boosting exports to US through GSP

RI Deputy Trade Minister calls for boosting exports to US through GSP

Bayu Krisnamurthi (right). (ANTARA/Ismar Patrizki)

Jakarta (ANTARA News) - Deputy Trade Minister Bayu Krishnamurti wished that exports to the United States can be increased by way of the Generalized System of Preference (GSP).

"Non-oil/gas exports to the US are actually widely open to business players who have not been maximizing the potential," Bayu Krisnamurthi said in a written statement of the Trade Ministry received in Jakarta on Sunday.

He said certain Indonesian export commodities could become more competitive on the US market if the US GSP program is used, because it provides import duty facilities to the US market for Indonesia`s export goods.

The US GSP program provides help to the developing and less developed countries to help these countries develop their economy.

President Barack Obama has reportedly signed an extension of the GSP program in October 2011 fore more than 3.400 different imported products from 129 countries, including Indonesia.

Indonesia is also the fourth country with biggest utilization of the US GSP program by exporting 652 types of products under the GSP scheme.

"As the fourth rating in utilizing the US GDP program, we have actually been quite effective, but considering the 3,400 kinds of products offered by the US we have utilized only 652 types of products, or only 20 pct, it means that many other products have not beem utilized under the US GSP facility," the deputy trade minister said.

He added, the lack of maximum utilization of the GSP facility was caused by the lack of knowledge of Indonesian business players on the benefits of the GSP and on how it is utilized.

He also said that the utilization of GSP is the right strategy in maintaining the growth of exports to the US amidst the crisis facing the super power.