The products were previously extracted from a list of products benefiting from the SPG facility because their exports were broken by “competition restrictions” from the United States, said Iman Pambagyo, who heads the Department of International Trade Negotiations. Indonesia signed a comprehensive free trade agreement with Japan in 2007. In February 2012, it signed a preferential trade agreement with Pakistan, which both governments intend to transform into a free trade agreement. But the Pakistani government reportedly refused to start new negotiations until concerns about the existing agreement were lifted. The SPG facility reduced tariffs to $2.1 billion of Indonesia`s $18.4 billion exported to the United States in 2018, based on data from the Indonesian Ministry of Commerce. Among the best products that received GSP benefits were tires, gold chains, fatty acids and leather handbags, as shown by the data. Read also: Indonesia signs US$750 million with US EXIM During the visit of Indonesian leaders, the United States offered to cooperate with the country in the production of vaccines. Indonesia is an important partner in the Indo-Pacific region and relations between the United States and Indonesia are increasingly important. Indonesia is the third largest democracy in the world, the largest Muslim-majority country, the seventh largest economy in terms of purchasing power and the leader of ASEAN. It has the world`s largest marine biodiversity and its second largest terrestrial biodiversity. Indonesia also borders the South China Sea, which has the world`s busiest shipping routes – more than $5 trillion in cargo and up to 50% of the world`s tankers cross the South China Sea each year. The United States was one of the first countries to establish diplomatic relations with Indonesia in 1949, after its independence from the Netherlands. Indonesia`s process of democratization and reform since 1998 has strengthened its stability and security and strengthened relations between the United States and Indonesia.
In 2010, the United States and Indonesia established a comprehensive partnership to promote, among other things, high-level engagement in the areas of democracy and civil society, education, security, resilience and mitigation, maritime, energy and trade. Based on their success, the two countries strengthened their relationship with the strategic partnership between the United States and Indonesia in 2015 and extended their cooperation to issues of regional and global importance.