With the election of Joe Biden as President of the US, will Indonesia's exports to the US be affected?
A researcher from the Insitute For Development of Economics and Finance, Andry Satrio, stated that Indonesia's exports to the US have increased following the confirmation of the addition of the Generalized System of Preferences (GSP) tariff preference facility to Indonesia by the United States Trade Representative (USTR) under the Trump administration.
"The extension of the GSP is a breath of fresh air. It can increase exports for the next five years," said Andry, in a virtual press conference, Sunday (8/11/2020).
GSP is a facility in the form of changes in import duty rates unilaterally granted by the US Government to developing countries in the world. With this, Indonesian products are free of import tariffs when they enter the Indonesian market so that they are easy to compete.
Based on statistical data from the United States International Trade Commission (USITC), in 2019, Indonesia's exports using GSP reached the US $ 2.61 billion. This figure is equivalent to 13.1 percent of Indonesia's total exports to the US, namely US $ 20.1 billion.
Meanwhile, according to data from the Central Statistics Agency (BPS), for the period from January to September 2020, the export value of Indonesian products to the US reached US $ 13.50 billion or contributed 12.14% to exports. The US is also the second-largest market after China at the US $ 20.43 billion or 18.37%.
Mostly, said Andry, Indonesian products exported to the US are clothing products, apparel, clothing accessories, rubber, and footwear.
"In the US, Indonesian products compete with Vietnam and Bangladesh," he said.
However, this facility will not feel soon, considering that Biden will experience a transition period of leadership from Trump, which will take about 2.5 months for administration.
Not only that, from the Senate side, the seats of the Republican Party are still superior to the Democrats and could make Biden's economic policies not as smooth as expected.
Source : https://www.cnbcindonesia.com/news/20201108190830-4-200224/joe-biden-presiden-ini-ramalan-ekspor-ri-ke-as