GSP Extension Can Help Enhance Indonesia-US Economic Cooperation: Ambassador

Jakarta: The United States (US) Government's decision to extend the Generalized System of Preferences (GSP) for Indonesia can help enhance business cooperation between the two countries, according to the Indonesian Ambassador to the US Muhammad Lutfi.
 
Besides inreasing two-way trade flows, another sector that will be positively affected is cooperation in the investment sector.
 
According to the Indonesian Ambassador, the extension of the duty exemption facility is inseparable from the very well-established bilateral relations between Indonesia and the US, including at the level of leaders of the two countries.

"The GSP facility is very important in helping Indonesia's superior export products to continue to be competitive in the US market, which is known to have a high level of competition," said the Indonesian Ambassador in a press release issued on Monday.
 
"Moreover, so far the US is the second largest non-oil and gas export market in the world for Indonesia", he added.
 
In 2019, Indonesia's exports with the GSP facility reached US$ 2.61 billion, equivalent to 13.1 percent of Indonesia's total exports to the US, which amounted to US$20.1 billion.
 
Meanwhile, for the January-August 2020 period, the value was US$ 1.87 billion, an increase of 10.6 percent over the same period last year.
 
GSP is a trade facility which has been given unilaterally by the US Government to developing countries in the world since 1974. Indonesia first enjoyed the trade facility from the US in 1980.
 
Apart from being the largest economy in the world, the US market has been known to be very promising because of the large population which reaches 331 million people and has very high purchasing power, where the per capita income of the US people in 2019 reached US$ 65thousand or more than Rp900 million.
 
In the same year, the annual household consumption of the US people also reached US$16 trillion, or the equivalent of one third of the world's household consumption.  

 
Cek Berita dan Artikel yang lain di Google News