TEMPO.CO, Jakarta - Indonesian President Joko Widodo, also known as Jokowi, said that he had discussed issues related to trade tariffs with South African President Jacob Gedleyihlekisa Zuma.

"We talked a lot about efforts to strengthen ties in trade. We agreed to remove tariff and non-tariff barriers soon," President Jokowi said during a press conference at the Presidential Palace in Jakarta on Wednesday, March 8, 2017.

President Jokowi added that the tariff and non-tariff removals would only apply to certain products and commodities.

Indonesian Foreign Minister Retno Marsudi said that the agreement discussed between President Jokowi and President Zuma is called the preferential trade agreement. In other words, the agreement applies to signature commodities and products.

Retno explained that the high tariff removal was agreed since Indonesian signature products had difficulties in tapping into the South African market. President Jokowi hopes that Indonesian signature products or commodities can enter South Africa and vice versa.

Retno added that President Jokowi was also in talks with the African Customs Union, consisting of Botswana, Lesotho, Namibia, Swaziland and South Africa to remove the tariff barriers for signature products.

"First, they have to agree [to remove the tariff barriers] before being engaged in talks. We will identify our signature commodities to be freed from tariffs," Retno said, adding that the initiative is aimed at boosting Indonesia’s competitiveness amid South Africa's development as an emerging country.

ISTMAN MP