Washington – The White House has announced an agreement with Indonesia to address key trade barriers, including key impediments to digital trade.
The announced framework looks to memorialize commitments Indonesia has made across the the services, goods and agricultural sectors, that are expected to be finalized in the near term as a formal agreement. Importantly, Indonesia has agreed to address several of its longstanding restrictions affecting digital trade, including local content requirements that have been imposed on communications devices, a tariff regime designed to impose duties and reporting requirements on products transmitted electronically, and certainty on the ability of U.S. firms to transfer personal information outside the territory of Indonesia. As a major market for U.S. technology companies, these commitments, if finalized, will improve market access opportunities in one of Southeast Asia’s largest and fastest growing markets.
The following can be attributed to CCIA Vice President Jonathan McHale:
“The announced Framework agreement for addressing Indonesia’s many trade barriers, including tariff regimes targeting digital products, restrictions on cross-border data flows, and local content requirements for communications devices, is an important and encouraging step in reforming what has long been one of the most challenging markets for U.S. suppliers. We look forward to a binding agreement addressing not only these restrictions, but a path to resolving all outstanding barriers that remain in this important market.”
