Trade Minister: Zero-Tariff US Product Imports Will Not Disrupt National Industry
Jakarta (ANTARA) - Trade Minister Budi Santoso has affirmed that imports of agricultural products from the United States subject to zero per cent tariffs will not disrupt the viability of domestic industry.
Budi noted that agricultural commodities such as soybeans, wheat and cotton are products required by industry and are not produced domestically.
"Most of these are things we actually need because they are mostly raw materials. We also need soybeans — our largest imports come from America. If we don't make this easier, it would actually harm our industry. We also need wheat, and we need a great deal of it," Budi said in Jakarta on Friday.
The Trade Minister explained that imposing zero per cent tariffs would give national industry easier access to imports and help suppress production costs.
He argued that if raw materials can be obtained at lower prices, the final product prices can also become more affordable for the public.
"The way to make things cheap is to make it easier — so we don't end up buying at high prices. If we buy at high prices, then food prices will be expensive too," he explained.
He added that commodities such as wheat and soybeans are vital to the food and beverage industry. According to him, this policy represents a rational step in safeguarding raw material supply, price stability and the sustainability of national industry.
Under the Agreement on Reciprocal Trade (ART), or reciprocal tariff arrangement between Indonesia and the United States, Indonesia has granted zero per cent tariff facilities for a number of agricultural commodities including soybeans and wheat from the US.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the policy aims to protect public purchasing power. Derivative products of soybeans and wheat — such as tofu, tempeh and instant noodles — will not be subject to additional cost burdens.
The principal impact of this agreement is the stabilisation of prices for import-based staple foods. Indonesia does not produce soybeans in sufficient quantities to meet the needs of the national food industry.
Budi noted that agricultural commodities such as soybeans, wheat and cotton are products required by industry and are not produced domestically.
"Most of these are things we actually need because they are mostly raw materials. We also need soybeans — our largest imports come from America. If we don't make this easier, it would actually harm our industry. We also need wheat, and we need a great deal of it," Budi said in Jakarta on Friday.
The Trade Minister explained that imposing zero per cent tariffs would give national industry easier access to imports and help suppress production costs.
He argued that if raw materials can be obtained at lower prices, the final product prices can also become more affordable for the public.
"The way to make things cheap is to make it easier — so we don't end up buying at high prices. If we buy at high prices, then food prices will be expensive too," he explained.
He added that commodities such as wheat and soybeans are vital to the food and beverage industry. According to him, this policy represents a rational step in safeguarding raw material supply, price stability and the sustainability of national industry.
Under the Agreement on Reciprocal Trade (ART), or reciprocal tariff arrangement between Indonesia and the United States, Indonesia has granted zero per cent tariff facilities for a number of agricultural commodities including soybeans and wheat from the US.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the policy aims to protect public purchasing power. Derivative products of soybeans and wheat — such as tofu, tempeh and instant noodles — will not be subject to additional cost burdens.
The principal impact of this agreement is the stabilisation of prices for import-based staple foods. Indonesia does not produce soybeans in sufficient quantities to meet the needs of the national food industry.