Indonesia is rushing to complete several trade deals to diversify its export market as a hedge against the impending tariff from the United States, in a move welcomed by industry players.
A top Indonesian official said South-east Asia’s largest economy is seeking zero per cent tariff from trade deals with the European Union, which has 27 member countries.
It is also seeking a separate agreement with the Eurasian Economic Union, said Mr Susiwijono Moegiarso, the most senior bureaucrat at Indonesia’s Coordinating Ministry for Economic Affairs. The members of the Eurasian grouping are Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia.
Indonesia is, additionally, accelerating to ratify a December 2024 comprehensive economic partnership agreement (Cepa) with Canada, he told a panel discussion in Jakarta on July 22, organised by Bank UOB Indonesia.
“In the past two weeks, we have been travelling to a number of countries… and we have achieved concrete results,” he had said at the session.
The US has set a 19 per cent tariff on most goods from Indonesia under a new agreement. Certain goods, including processed nickel, coffee beans and others that are not produced by the US, may get a lower rate.
Mr Susiwijono said that the expected deal with the EU will take effect in 2026.
Posted by John3262005