Prabowo Clarifies Joining BoP and Signing Tariffs with the US During Meeting with Islamic Organisations

During an iftar with Islamic organisations at the Istana Merdeka in Central Jakarta on Thursday, President Prabowo Subianto explained Indonesia’s reasons for joining the Board of Peace (BoP) and for signing the Agreement on Reciprocal Trade with the United States (ART). Minister of State for Agrarian Affairs and Spatial Planning Nusron Wahid said the president’s remarks aimed to correct public misperceptions, including that the tariff agreement would not benefit Indonesia. “The discussion covered the global conditions, why Indonesia joined BoP, and how to anticipate the effects of the Iran crisis. We must ensure the Iran conflict does not aggravate crises here, whether in food or energy. Then it explained why Indonesia signed the ART with the United States,” Nusron Wahid said on Thursday. One aim is to keep Indonesian product prices competitive in the American market. Under the agreement, the United States’ reciprocal tariff on Indonesian products is 19 percent, down from 32 percent. In some cases, the US applies a 0 percent tariff to certain Indonesian products. Nusron Wahid added that the increase in imports of several commodities, including fuels, resulting from the agreement, is not new; Indonesia has long imported these commodities or products from other countries. “All of this has been explained by the President; the policy is a win-win solution,” he said.