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Tuesday, 11 August 09
INDONESIA'S COAL EXPORTS TO INDIA WILL BE EXEMPTED FROM DUTIES STARTING JANUARY 1, 2013 - BERITA SORE


Berita sore reported that, ASEAN is scheduled to sign a long-awaited Free Trade Agreement (FTA) with India in Bangkok on Thursday aimed at boosting their trade relations. “This is the continuation of longstanding negotiations since 2005,” Indonesian Trade Minister Mari Elka Pangestu said in a press conference here on Monday.

She said the agreement will be signed on the occasion of an ASEAN Economic Ministers meeting in the Thai capital on August 13-16. The agreement will require India to lower and abolish duties on 85 percent of its imports from the region between 2010 and 2019, she said.

Under the agreement, India will exempt 4,145 different Indonesian goods from import duties. In return, Indonesia will abolish duties on 4,749 types of Indian commodities, she said.

The agreement is expected to increase Indonesia’s exports of crude palm oil (CPO) and its derivatives to India. Indonesia’s exports of CPO and derivatives to the South Asian country are currently subject to 80 percent and 90 percent duties respectively. The duties will be lowered to 36.5 percent and 45 percent respectively by 2019.


Indonesia’s coal exports to India will also be exempted from duties starting January 1, 2013 - Mari Elka Pangestu, Trade Minister, Indonesia
 
“Hopefully, the FTA will create a greater chance for Indonesia to increase its exports to India,” she said.

Among the Indian commodities which will have their import duties reduced will be electronic apparatuses for telephone, cotton, semi-finished iron and alloy steel and automotive products related to Indian investment in Indonesia.

Data from the Central Bureau of Statistics (BPS) show two-way trade between Indonesia and India reached an estimated US$9 billion in 2008 with the former enjoying a surplus of US$4 billion. ( ant )
Source: Berita Sore



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