RI Seeking Zero Import Tariff For Palm Oil Entering USA

JAKARTA – The Indonesian government is seeking further negotiations with the USA government to get import tariff of 0% for a number of main commodities. Previously, the USA had decided to charge 19% import tariff for Indonesian commodities entering the country.

Menko Perekonomian RI Airlangga Hartarto dan Mendag USA Howard Lutnick. Doc/IG: Airlangga Hartarto

The economic coordinating ministry’s Secretary Susiwijono Moegiarso said that President Donald Trump had recently decided the reciprocal tariff for Indonesian goods at 19%, but there is still a possibility for further negotiations. “The negotiations can be further pursued for commodities that are really needed by the USA but cannot be produced there,” he said.

“Yesterday, President Prabowo Subianto had informed that the reciprocal tariff decided by President Trump for Indonesia is 19%. But there is still room to negotiate. We have several commodities that are really needed by the USA but could not be produced there. We can export the commodities to the country. It’s for those commodities that we’re seeking zero (0%) tariff,” Susiwijono was quoted by Antara as saying in Jakarta on Friday (18/7/2025).

Susiwijono said that the main commodities being proposed by Indonesian government to get zero tariff from USA are crude palm oil (CPO), coffee, cocoa, and nickel. He said that there are many commodities being offered, which have high competitiveness and could become strategic products for the Uncle Sam market.

According to him, negotiation process was still proceeding between the Indonesian team led by Economic Coordinating Minister Airlangga Hartarto and the team of USA trade representative office (USTR).

He said that all details of bilateral agreement between Indonesia and USA will be contained in a document of joint statement. “The joint statement will cover all points of bilateral agreement, from import tariff to solution of non-tariff barriers, and to their commitment of bilateral trade and investments. We’ve prepared final document,” Susiwijono said.

Previously, President Trump announced to lower the import tariff of goods from Indonesia from 32% to 19%. It was decided by President Trump after having a direct negotiation with President Prabowo.

Meanwhile, Economic Coordinating Minister Airlangga Hartarto said that Indonesia, together with several other countries, has reached a new trade agreement with the USA, so that Indonesian goods will not be slapped with the percentage of tariff set before.

“Indonesia has reached a new trade deal with the USA. The previous tariff scheduled to be effective since 01 August will not apply for us and several other countries, such as UK,  Vietnam, and China,” Airlangga said after meeting with business players association in Jakarta on Monday (21/072025).

Previously, the USA planned to apply reciprocal tariff at 32 percent for all products of Indonesia. But then, based on the latest negotiations the tariff is agreed at 19 percent, with a number of strategic trade commitments. The commitments include the purchase of energy products from USA at the value of US$15 billion, agricultural products at the value of US$4.5 billion, and order of 50 Boeing aircrafts by Indonesia, which are mostly Boeing 777 type.

Despite the fact, Airlangga said that the basic tariff of 10 percent is still applied by the USA for all trade partners, including Indonesia, while waiting for a formal announcement. (*)