InfoSAWIT, NEW DELHI – In the ASEAN Troika with Minister of Trade of India, Piyush Goyal in New Delhi, India, 9 July 2019 besides discussing to accomplish Regional Comprehensive Economic Partnership (RCEP), Minister of Trade of Indonesia, Enggartiasto Lukita did bilateral meeting with the government of India.
Enggartiasto also urged that palm oil products from Indonesia to get the same tariff with the palm oil products from Malaysia though it is undeniable that the different tariff happens for Malaysia has run bilateral Free Trade Agreement (FTA) with India while Indonesia has not done it.
Minister of Trade of India seriously thought about the request. Minister Enggartiasto should also pay attention to the exporters from India who faced issues to trade in Indonesia. It is assumed that the commitment does not run well between Indonesia in the World Trade Center (WTO) and ASEAN and India FTA.
“We need to consider what India requested so that palm oil from Indonesia has the fair trade in India. It needs to see in the macro perspective not in sector because our trade balance with India is always surplus and last year it reached US$ 8,7 billion,” Enggartiasto said in the official statement to InfoSAWIT recently.
He also mentioned that Indonesia needs to give ‘fair’ chance to India because it is difficult to get surplus trade with Indonesia about palm oil exports because of tariff and non-tariff barriers.
Based on data from Central Bureau of Statistic, the total trade between Indonesia and India in 2018 reached US$ 18,75 billion within the exports of Indonesia reaching US$ 13,72 billion to India and the imports reaching US$ 5,01 billion. The surplus for Indonesia reached US$ 8,7 billion. The total trade between the two in January—April 2019 reached US$ 5,58 billion. (T2)