EU asks Indonesia to eliminate import duties
Katadata | 4 March 2016
EU asks Indonesia to eliminate import duties
by Miftah Ardhian
In just two years, Indonesia will be entering into a free trade agreement (FTA) with the European Union (EU). Currently, the government is negotiating the finer points of the FTA with the EU.
Coordinating Minister for Economic Affairs Darmin Nasution explained that he held a coordinating meeting on the FTA yesterday (3/3) to iron out some residual issues. Darmin said that the EU’s request for an import duty reduction of 95 percent for all trade items was a particular obstacle because Indonesian industrial products could not compete with European products. The EU also requested the removal of export duties.
Darmin explained that Indonesia should be more assertive in its negotiations with the EU, especially since Indonesia’s trade balance with the EU is regularly in surplus because Indonesia exports many products to the region.
Intensive coordination between the relevant ministries and agencies is needed to quickly reach a compromise as President Joko Widodo (Jokowi) is soon to visit several EU countries including Germany, the UK, Netherlands, and Belgium. “We must be put up a fight because we’re not competing with the EU, like we are with other countries like India and China,” said Darmin in his press release on Thursday (3/3).
Jokowi has set a target to finalise the FTA with the EU in two years. This means that Indonesia must be ready to enter into a free trade agreement with the EU by 2018.
