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Indonesia - Australia Mull Exempting Import Duties
Australian Ambassador to Indonesia Paul Grigson (right) and Coordinating Minister for Political, Legal, and Security Affairs Minister Wiranto. TEMPO/Imam Sukamto
Friday, 13 October, 2017 | 12:30 WIB
Indonesia - Australia Mull Exempting Import Duties

TEMPO.CO, Jakarta - The Indonesian and Australian governments are mulling to implement zero percent import duties for each country`s three leading commodities.

Industry Minister Airlangga Hartarto said the policy is included in the Indonesia-Australia Comprehensive Economic Partnership Agreement, which is expected to spur industrial growth through export market expansion.

"This is a discussion on the implementation of free trade agreement, so we must take into account the advantages and disadvantages," Airlangga said in an e-mail yesterday, Oct. 12.

Airlangga discussed the matter with the Australian Ambassador to Indonesia Paul Grigson in his office on Wednesday. The minister said Australia requested the exemption of import duties for skim milk and skim milk powder, copper cathodes, and hot and cold rolled steel; while offering duty free for Indonesia's textiles, footwear and clothing.

According to Airlangga, the exemption of import duty is a great opportunity for Indonesia's industries to grow. However, the ministry's director general of international industrial resilience and development (KPAII) Harjanto said they cannot immediately approve Australia's proposal, as it requires comprehensive calculations to ensure that the cooperation benefits both nations.

He suggests Australia to use a user specific duty free scheme (USDFS), which gives zero percent tariff preferences when there are investment inflows. "Investment must flow to bring in technology transfer."

FERY F.



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