WASHINGTON – The Business Software Alliance welcomed breakthrough provisions on digital trade and data policy that reflects a decade of BSA advocacy in the US-Indonesia trade agreement announced Tuesday. 

BSA commended the United States Trade Representative (USTR) for its leadership advancing high-standard digital trade rules across the Indo-Pacific and around the world. BSA SVP of Global Policy Aaron Cooper said: 

“The US-Indonesia trade agreement is a breakthrough in digital trade policy. The agreement’s provisions to eliminate tariffs on intangible digital products, guaranteeing cross-border data transfers, and supporting the permanent extension of the moratorium on digital customs duties expands access to digital services and supports the adoption of technology. This agreement sends a strong signal to the global economy and many industries that rely on open and secure digital trade, and reflects key reforms that have been core BSA priorities for nearly a decade.” 

The agreement includes commitments by Indonesia to: 

• Eliminate tariff lines and import declaration requirements on intangible digital products;
• Support an immediate, unconditional, and permanent extension of the WTO Moratorium on Customs Duties on Electronic Transmissions;
• Implement its obligations under the WTO Joint Initiative on Services Domestic Regulation; and
• Provide certainty for cross-border data transfers by recognizing the United States as a jurisdiction offering adequate data protection under Indonesian law. 

BSA and its cross-sector partner organization, the Global Data Alliance, wrote the USTR earlier this year to outline strategic digital priorities in any agreement with Indonesia. In January, BSA CEO Victoria Espinel wrote to President Trump encouraging his current administration to build on gold-standard digital trade deals achieved during the president’s first term in office. 

BSA commends the Office of the US Trade Representative for its leadership and persistence in reaching this outcome and look forward to continuing to pursue further progress on data transfer and digital trade issues.