Jakarta (ANTARA) - The Indonesian Food and Beverage Producers\nAssociation (GAPMMI) has assessed that the Indonesian government\u2019s trade\nnegotiations with the United States play a vital role in strengthening\nthe competitiveness of flagship national products whilst safeguarding\nthe sustainability of the food and beverage industry.<\/p>\n
GAPMMI considers that the negotiations provide market certainty and a\nconducive business climate, which are key factors for industry\nsustainability.<\/p>\n
\u201cFor the food and beverage sector, such certainty is also highly\ndependent on the availability and sustainability of industrial raw\nmaterial supplies, particularly for certain raw materials that are not\nyet fully available or cannot be sourced domestically,\u201d said GAPMMI\nchairman Adhi Lukman in a confirmed statement in Jakarta on Monday.<\/p>\n
The organisation expressed its appreciation for the government\u2019s\nefforts, led directly by President Prabowo Subianto, in maintaining\nbusiness climate stability, enhancing competitiveness, and strengthening\nnational industrial resilience through the trade negotiation process\nwith the US.<\/p>\n
According to GAPMMI, the government\u2019s trade negotiations have the\npotential to open alternative sources of raw materials needed by\nindustry. This is seen as supporting the continuity of downstream food\nindustry production, safeguarding investment realisation, ensuring\nlabour absorption along the food and beverage industry value chain, and\nhelping to maintain public purchasing power.<\/p>\n
Furthermore, the negotiation process is considered capable of\nreducing trade uncertainty and strengthening the position of Indonesia\u2019s\nflagship products in the US market, such as cocoa, coffee, palm oil and\ntheir derivatives, which have received tariff exemptions.<\/p>\n
\u201cMarket access certainty and more competitive tariffs provide space\nfor industry players to improve cost efficiency, maintain production\ncapacity utilisation, and strengthen export-oriented investment\nplanning. For food and beverage industries integrated into global supply\nchains, this is a critical supporting factor in maintaining and\nexpanding the penetration of Indonesian products in international\nmarkets,\u201d Adhi added.<\/p>\n
The National Economic Council (DEN) stated that the signing of a\ntrade agreement between the Indonesian government and the United States\ncould protect national interests amid rising international trade\nuncertainty.<\/p>\n
DEN chairman Luhut Binsar Pandjaitan said the agreement represented a\nstrategic step to ensure Indonesia\u2019s position remains strong and\ncredible whilst reinforcing national industrial competitiveness.<\/p>\n
\u201cThis agreement ensures Indonesia\u2019s position remains strong and\ncredible amid global trade uncertainty. This is a strategic step to\nprotect national interests whilst strengthening our economic\ncompetitiveness,\u201d he said in Jakarta on Monday.<\/p>\n
Previously, the US Supreme Court struck down the reciprocal trade\ntariff policy imposed by US President Donald Trump, ruling that the\nlegal basis used \u2014 the International Emergency Economic Powers Act\n(IEEPA) \u2014 was invalid.<\/p>\n
IEEPA is legislation signed by US President Jimmy Carter on 28\nDecember 1977 that permits the president to regulate US international\ntrade after declaring a national emergency in response to extraordinary\nthreats originating from abroad.<\/p>\n
President Trump responded to the annulment of the reciprocal tariff\npolicy by imposing a new 15 per cent tariff for the next 150 days,\nwhilst simultaneously opening new trade investigations under Section 301\nof the US Trade Act of 1974.<\/p>\n
Luhut stated that tariffs resulting from the Section 301\ninvestigation could be higher than the reciprocal tariffs that were just\nstruck down, as the regulation has no maximum tariff ceiling and can\nremain in effect for years.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/food-and-beverage-industry-hails-indonesia-us-trade-negotiations-as-boost-for-flagship-products-1771891927", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }