TEMPO.CO, Jakarta - The Indonesian and Iranian government discussed reduction on export tariff in the fourth session of Preferential Trade Agreement (PTA).
Ministry of Trade director for bilateral negotiation Ni Made Ayu Marthini said that one of the points of negotiations held from September 28 to 30 is the reduction of Indonesian export tariff to Iran which is considered really high.
"The negotiation is a real action taken by the government and the results will benefit businessmen," she said on Saturday, Sept. 30.
Made Ayu explained that the high export tariff to Iran due to the country’s policy and the transaction is done by means of a third party. At the moment, the tariff levied by Iran ranges from 5 to 55 percent. Reducing export tariff will cut export costs to the country.
In addition to the discussion on modalities and products that are subject to the tariff, Made Ayu continued, the negotiation is still based on Rules of Origin. She claimed that both Indonesia and Iran agree to immediately settle the negotiation in order to expedite implementation.
The negotiation is expected to reach a final agreement by 2018.