ART Indonesia-US Agreement Approved: Agricultural Product Imports Worth Rp 75.6 Trillion Do Not Use State Budget

Jakarta - The Government has ensured that the budget for agricultural product imports valued at 4.5 billion US dollars or equivalent to Rp 75.6 trillion (at exchange rate of Rp 16,787 per US dollar) does not originate from the State Budget and Expenditure (APBN).

The agricultural product import facility valued at 4.5 billion US dollars was agreed through the Agreement on Reciprocal Trade (ART) framework between Indonesia and the United States some time ago as part of strengthening the bilateral trade relationship.

The Spokesperson of the Coordinating Ministry for Economic Affairs, Haryo Limanseto, stressed that this scheme is entirely based on business transactions between business actors.

“The Government only serves as a regulator and keeper of quality standards, whilst transaction and financing decisions rest entirely with the private sector,” said Haryo in a press statement.

The contribution is considered significant, making the protection of US market access a strategic step to safeguard the competitiveness of national products. Amid global economic dynamics and increasing protectionism in several countries, a balanced trade approach is deemed important to maintain the flow of exports.

“Therefore, maintaining access to the American market through a balanced trade approach is a rational step to protect the competitiveness of national products,” he explained.

With the opening of wider supply options from the United States, business actors are expected to obtain raw materials that are stable, high quality, and competitively priced. Supply stability is considered to support the sustainability of industrial value chains whilst improving production efficiency.

“With the opening of wider and more competitive supply options, domestic business actors can obtain raw materials that are stable, high quality, and at competitive prices,” Haryo stated.