INDONESIA, U.S. AGREE TO CUT TRADE HURDLES

Both countries will work to create level playing field, with equal opportunities and market access, says Pence

JAKARTA

INDONESIA and the United States agreed yesterday to find ways to reduce barriers to US companies operating in Southeast Asia’s largest economy, said visiting US Vice-President Mike Pence and Jakarta’s investment chief.

The Trump administration has put Indonesia on a list of 16 countries whose trade surpluses with the US will be put under review.

A series of disputes between Indonesia and American firms has also ruffled ties.

“We would work with President Jokowi to reduce barriers to trade and investments and to create a truly level playing field where all our businesses have equal opportunity and market access,” said Pence.

Jokowi is the nickname of Indonesian President Joko Widodo.

“The president and I spoke about that very candidly and very respectfully,” said Pence at a roundtable discussion with business executives, here, before flying to Australia on the last leg of his 10-day Asia-Pacific tour.

Indonesia’s investments barriers included lack of intellectual property protection, insufficient transparency with regulations and requiring local content for manufactured goods sold in the Indonesian market, said Pence.

Indonesia’s Investment Coordinating Board chief Tom Lembong said Joko agreed “we still have too many regulations, too many barriers and these are bad for local and global industries”.

“I’m optimistic because President Jokowi and President Trump are both lifelong business people, and I think they are very focused on the practical issues that hinder business and investment,” said Tom.

“I feel the Trump administration and the Jokowi administration are on the same wavelength.”

He said Indonesia needed investment and imports from the US, “especially productivity-enhancing products and services”.

Pence also witnessed the signing of more than US$10 billion (RM44 billion) in memoranda of understanding with US companies in Indonesia yesterday.

Among the 11 agreements were ones by Exxon Mobil Corp to sell liquefied natural gas to Pertamina, Lockheed Martin to provide upgrades to the Indonesian Air Force’s F-16s, and General Electric to develop electrical infrastructure in Indonesia.

“We think there are opportunities to clear open the way for American companies to participate more greatly in Indonesia,” said Pence. Reuters