Indonesia eyes increased US investment, trade after preference extension

JAKARTA (CNA) – Indonesia will see a significant boost in trade and investment from the United States (US) as a result of Washington’s renewed trade preference facility with Southeast Asia’s largest economy, a top Indonesian official said yesterday.

“The ambition of the government is to double (US-Indonesia) trade in the next five years to USUSD60 billion, while simultaneously encouraging US investment,” said Vice Foreign Minister Mahendra Siregar, who noted this came after over two years of negotiations.

The Office of the United States Trade Representative (USTR) said on Friday it had closed Indonesia’s eligibility review for access to the Generalized System of Preferences (GSP) facility, with no loss of previous benefits.

The GSP programme gives privileged trade status to developing economies.

Total two-way trade with the US was worth USUSD28.6 billion last year, according to Indonesian trade ministry data.