Indonesia to allow tariff-free import of Palestinian dates, olive oil

A Palestinian woman picks pineapples at a farm in Khan Yunis. Palestine and Indonesia have signed an MoU allowing for zero import tariffs on certain goods between the two countries. (Getty Images)
Updated 07 August 2018

Indonesia to allow tariff-free import of Palestinian dates, olive oil

  • The initial Palestinian products that will be exempted from import tariffs are fresh and dried dates and virgin olive oil
  • Indonesia Trade Minister Enggartiasto Lukita: Policy is part of Indonesia’s unwavering support for the Palestinian issue, which has always been the focus of its foreign policy.

JAKARTA: Indonesia and Palestine have signed an agreement that will allow for zero tariffs on some Palestinian goods imported into Indonesia from next month.

The agreement is a follow-up to the Memorandum of Understanding that Trade Minister Enggartiasto Lukita and his Palestinian counterpart signed on the sidelines of the 11th World Trade Organization Ministerial Conference in Buenos Aires, Argentina, last December. The MoU allows zero import tariffs for certain goods between the two countries.

“It will be one-way trade from Palestine to Indonesia at the start, but we expect in the future it will be a two-way trade,” the Trade Ministry’s Director General for International Trade Negotiations Iman Pambagyo told Arab News.

The initial Palestinian products that will be exempted from import tariffs are fresh and dried dates and virgin olive oil. Pambagyo said that, during the first year of the agreement, dates imported from Palestine are estimated to increase by 11.62 percent, while olive oil is estimated to jump by 172 percent, as a lot of Indonesian cosmetic manufacturers use olive oil as an ingredient in their products.

“We will encourage our importers to benefit from this policy by sourcing their olive oil and dates from Palestine,” Pambagyo added.

Fachry Thaib, head of the Middle East Committee at the Indonesian Chamber of Commerce, said the business community welcomed the agreement and its upcoming implementation.

“We have always encouraged the government to expedite the MoU implementation. This policy would be beneficial for importers since it would make the products more competitive in the domestic market,” he told Arab News.

He said the policy will not hit other imported goods, given the big market opportunities for dates, which are widely consumed by Indonesians.

Lukota and Palestinian Ambassador to Indonesia Zuhair Al-Shun signed the agreement on Monday following the ratification of the MoU into a presidential regulation in April.

The finance minister will allow the MoU to fully take effect by issuing two ministerial regulations — on import tariff waivers for Palestinian products and on the technical direction for customs offices to execute the policy.

Pambagyo said these regulations will be circulated to all ports of entry so that customs officers can identify products from Palestine and exempt them from any import duties.

Lukita said this policy was part of Indonesia’s unwavering support for the Palestinian issue, which has always been the focus of its foreign policy.

“This is in accordance to President Joko Widodo’s instruction to facilitate what the Palestinian people need and for us to import their products,” Lukita told a press conference after signing the agreement.

“It shows that Indonesia also supports Palestine through trade, not just through [foreign] policy,” Lukita added.

Apart from dates and olive oil, Lukita said Indonesia will welcome other goods from Palestine and will also export Indonesian goods to Palestine.

“But we are still waiting from the Palestinian side the list of goods that they need from us,” he said.

Al-Shun said the policy will help to empower the Palestinian economy. “We hope this cooperation will continue to strengthen ties between Indonesia and Palestine, especially on trade,” he said through an interpreter.

Data from the Central Statistics Agency showed that, as of May this year, total trade between the two countries had reached $1.62 million, with a $195,500 surplus for Indonesia. Total trade between the two countries in 2017 was valued at $2.39 million, which consisted entirely of non-oil and gas commodities. Indonesia’s exports to Palestine last year totalled $2.05 million, while its sole import from Palestine was dates, which were valued at $341,000.

Indonesia has been a staunch supporter of Palestinian independence and has pledged to focus on voicing support for Palestine during its tenure as a non-permanent member at the UN Security Council in 2019-2020.


Kim Jong Un invites Trump to Pyongyang

Updated 16 September 2019

Kim Jong Un invites Trump to Pyongyang

  • Invitation extended in an undisclosed personal letter sent to Trump on Aug. 15

SEOUL: North Korean leader Kim Jong Un has invited US President Donald Trump to Pyongyang in his latest letter to the American head of state,  South Korea’s top diplomat said on Monday.

“I heard detailed explanations from US officials that there was such a letter a while ago,” Foreign Minister Kang Kyung-hwa told a  parliamentary session. “But I’m not in a position to confirm what’s in the letter or when it was delivered.”

The foreign minister’s remarks followed reports by a local newspaper, JoongAng Ilbo, which said that Kim’s invitation was extended in an undisclosed personal letter sent to Trump on Aug. 15.

If true, the invitation was made as diplomats of the two governments were in a tug-of-war over the resumption of working-level talks for the North’s denuclearization efforts.

During a surprise meeting at the Korean border village of Panmunjom on June 30, Trump and Kim pledged that working-level nuclear disarmament talks would resume within a month, but no such talks have been held,  with both sides indulging in a blame game instead.

“We are very curious about the background of the American top  diplomat’s thoughtless remarks and we will watch what calculations he has,” North Korea’s first vice Foreign Minister Choe Son-hui said on Aug. 30 in a statement carried by the North’s official Central News Agency (KCNA). He was referring to US Secretary of State Mike Pompeo’s comments terming Pyongyang’s rocket launches as “rogue.”

However, the tone has changed significantly with the communist state recently offering to return to dialogue with Washington “at a time and place agreed late in September.”

“I want to believe that the US side would come out with an alternative based on a calculation method that serves both sides’ interests and is acceptable to us,” Choe said on Aug. 30.

On Monday, the director-general of the North Korean Foreign Ministry’s department of American affairs said working-level denuclearization talks will likely take place “in a few weeks” but demanded security guarantees and sanctions’ relief as prerequisites.

“The discussion of denuclearization may be possible when threats and hurdles endangering our system security and obstructing our  development are clearly removed beyond all doubt,” the statement said. 

HIGHLIGHT

It’s not clear whether the US president has responded to the invitation, thought he has touted his personal relationship with the young North Korean dictator.

South Korean President Moon Jae-in was upbeat about the early resumption of nuclear talks.

“North Korea-US working-level dialogue will resume soon,” he said, citing an “unchanged commitment” to trust and peace by the leaders of both Koreas and the US. 

The working-level meeting will serve as a “force to advance the peace process on the Korean Peninsula,” he added.

Moon is scheduled to meet Trump on the sidelines of a UN General Assembly session in New York next week.

“It will be an opportunity to share opinions and gather wisdom with Trump on the direction of further development of South Korea-US  relations,” he said.

The White House offered no immediate comment.

It’s not clear whether Trump responded to Kim’s invitation to Pyongyang, but the US commander-in-chief has touted his personal relationship with the young North Korean dictator, who oversaw the test-firings of short-range ballistic missiles and multiple launch rockets more than half a dozen times since late July.

While none of the projectiles are a direct threat to the US continent they still pose threats to US and its allied forces in South Korea and Japan.

“Kim Jong-un has been, you know, pretty straight with me, I think,” Trump told reporters on August 24 before flying off to meet with world leaders at the G7 in France. “And we’re going to see what’s going on. We’re going to see what’s happening. He likes testing missiles.”

Experts say the apparent firing of US National Security Adviser John Bolton has also boosted chances of fresh negotiations with the North, which had long criticized him for his hawkish approach toward the regime.

“The displacement of a ‘bad guy’ could be construed as a negotiating tactic to seek a breakthrough in the stalemate of nuclear talks. It’s a show of a will to engage the counterpart in a friendlier manner from the perspective of negotiation science,” Park Sang-ki, an adjunct professor at the department of business management at Sejong University in Seoul, told Arab News.