A truck unloads containers at Tanjung Priok port in Jakarta.(B1 Photo/Mohammad Defrizal)

UK's New Trading Scheme to Lower Tariffs for Indonesia


JULY 22, 2021

Jakarta. The UK has recently opened an eight-week public consultation on the new trading rules which will reduce and simplify tariffs for low and lower-middle income countries, including Indonesia.

Indonesia is among the 70 qualified countries for the new UK Developing Countries Trading Scheme (DCTS), which is expected to take effect in 2022. 

The scheme will enable Indonesia to enjoy lower tariffs for their exports to the UK, thus potentially boosting bilateral trade and advance growth in Indonesia. The DCTS will replace UK’s Generalized System of Preferences (GSP), which Indonesia is also a beneficiary to.

According to Rob Fenn, the British Deputy Ambassador to Indonesia and Timor Leste, the UK-Indonesia bilateral trade stands at around £3 billion (or around $4.12 billion). UK's investments in Indonesia totaled £7.1 billion in 2019, making them Indonesia's second largest biggest European investor. The UK's investments have also helped create a million jobs in Indonesia. 


"The proposed DCTS scheme signals the UK’s appetite to promote global free and fair trade, as well as demonstrating our commitment to Indonesia, by enabling Indonesian businesses to access the UK market more easily," Fenn said in a statement on Thursday.

Fenn noted Indonesia is the UK’s 52nd largest trading partner, at least 30 places lower than it might potentially be. 

“Increasing trade is a win-win, that benefits both nations and with that ambition in mind, we have already established a Joint Economic and Trade Committee [Jetco] with the Indonesian government, to identify steps we can take to increase trade," he said. 

Fenn also encouraged business owners in Indonesia to take part in the public consultation and submit ideas on how selling to the UK could be made easier. The public consultation will close on September 12.