United States, Indonesia Discuss Extending GSP Trade Preference Program

TEMPO.CO, Jakarta - The Indonesian and the United States governments are both discussing the possibility of extending the generalized system of preferences (GSP) during the visit of the United States Deputy Secretary of State Wendy Ruth Sherman on Monday in Jakarta.

The GSP program is one of the largest and oldest trade preference programs that was first initiated in the Trade Act of 1974, which promotes economic development by eliminating duties of thousands of products when being imported from the appointed 119 countries and regions. 

During her visit, Sherman also discussed other international issues such as the crises in Palestine, Myanmar, Indo-Pacific issues, climate change, and the protection of Indonesian diaspora residing in the United States.

The Indonesian Foreign Affairs Deputy Minister Mahendra Siregar said in a joint press conference on May 31st that the current GSP was in the process of being finalized in the United States legislation. He voiced hopes that the extension of the GSP would help increase the bilateral trade volume that nearly reached US$30 billion, or roughly Rp428 trillion.

“However, the two governments are optimistic that the partnership will continue and be stronger than ever,” he said in the press conference in Jakarta, May 31. 

The Indonesian government also plans to invite investors from the U.S. to provide feedback on the widely contested Job Creation Law (UU Cipta Kerja), which is mainly established to attract investments into Indonesia. 

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