{"id":29608,"date":"2025-04-17T07:53:46","date_gmt":"2025-04-17T07:53:46","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=29608"},"modified":"2025-04-22T07:57:15","modified_gmt":"2025-04-22T07:57:15","slug":"gapki-prepares-strategy-to-deal-with-usa-reciprocal-tariff","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2025\/04\/17\/gapki-prepares-strategy-to-deal-with-usa-reciprocal-tariff\/","title":{"rendered":"GAPKI Prepares Strategy To Deal With USA Reciprocal Tariff"},"content":{"rendered":"

JAKARTA \u2013 The policy of import tariff of 32% imposed by USA President Donald Trump against Indonesia has significantly burdened palm oil exports. The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that the new USA tariff will reduce Indonesian competitiveness in the USA market, where Indonesian exports have been rising during the last few years and are projected to keep growing in the future.<\/p>\n

<\/p>\n

RI\u2019s Palm Exports To USA Steadily Rise<\/strong><\/p>\n

During the last five years, the palm oil exports of Indonesia to USA have shown a rising trend. Indonesia\u2019s palm exports to USA increased from 1.5 million tons in 2020 to 2.5 million tons in 2023. Despite decrease to 2.2 million tons in 2024, the export value is estimated at US$2.9 billion, and its market share reached 89% of the total palm oil exports to the USA.<\/p>\n

\u201cPalm oil has become the main raw material of food industries in USA, such as margarine, which cannot be replaced by other vegetable oils due to health issues such as trans fat from soybean,\u201d said Edi.<\/p>\n

New Tariff Impact and Export Burden<\/strong><\/p>\n

The application of 32% tariff by the USA is seen causing heavier burden to Indonesia compared to its competitors, such as Malaysia, which is only slapped with a new import tariff of 24%. Besides, business players in Indonesia have been burdened with three kinds of export obligations, namely domestic market obligation (DMO), Export Tariff (PE), and Export Tax (BK), which amounts to US$221 per metric ton, higher than Malaysia at only US$140 per metric ton.<\/p>\n

\u201cSuch condition makes Indonesian palm oil less competitive. That\u2019s why we ask the government to consider reducing the export burden of palm oil to keep its competitiveness in USA market,\u201d he said.<\/p>\n

Eddy added that Indonesia is also facing challenges of logistics, as shipping from Malaysia to USA is closer than Indonesia.<\/p>\n

Short and Long Term Strategy<\/strong><\/p>\n

Eddy said that GAPKI has discussed the issue with the government, including with the economic coordinating ministry and finance ministry. He expressed appreciation to the government that has signalled to review the export burdens as a short term way to maintain the competitiveness of Indonesian palm oil in the USA market.<\/p>\n

\u201cIn short term, the only way for us to stay competitive is by reducing our export burden. In long term, we have to continually increase our productivity,\u201d he said.<\/p>\n

Efforts to increase productivity are pursued through the use of pollinating insects from Tanzania and the use of organic fertilizer to reduce reliance on imported chemical fertilizers.<\/p>\n

Market Diversification and Global Recession Anticipation<\/strong><\/p>\n

Eddy underlined the importance of diversifying the market, especially aimed to anticipate further trade wars that are potential to affect other markets, such as China and European Union (EU).<\/p>\n

\u201cWe target Latin America and Africa as alternative markets that we\u2019re now sounding out. Next month (May 2025) we\u2019ll be conducting a trade mission to Egypt to expand our market,\u201d he said.<\/p>\n

Eddy also expressed his concerns over the risk of global recession that could reduce export demand as a whole. \u201cIt\u2019s important for us to have a strategy, which is not merely a reactive response to the USA tariff, but also anticipative about global dynamics.<\/p>\n

Optimism With Government Support<\/strong><\/p>\n

Eddy expressed his optimism that with the government\u2019s quick steps and supportive policies, Indonesia will keep and even increase its palm oil exports to USA.<\/p>\n

\u201cI believe this tariff problem can be solved, our export to USA will keep rising as it has been demanded by the food industries in the country,\u201d he said. (Summary of Corporate Insight, Live BeritaSatu):<\/em> https:\/\/www.youtube.com\/watch?v=1_MhejGalg0<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

JAKARTA \u2013 The policy of import tariff of 32% imposed by USA President Donald Trump against Indonesia has significantly burdened palm oil exports. The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that the new USA tariff will reduce Indonesian competitiveness in the USA market, where Indonesian exports have been rising during the last… GAPKI Prepares Strategy To Deal With USA Reciprocal Tariff<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":29609,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":70,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[3710,3708,3709],"tags":[],"class_list":["post-29608","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-info-activity","category-publication","category-recent-news"],"yoast_head":"\nGAPKI Prepares Strategy To Deal With USA Reciprocal Tariff - 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It is in line with the expectation that Indonesia and EU are about to finalize the Indonesia\u2013European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). The finance ministry\u2019s Strategic\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/10\/oilpalm_foodnavigator-latam.com_.jpg?fit=854%2C534&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/10\/oilpalm_foodnavigator-latam.com_.jpg?fit=854%2C534&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/10\/oilpalm_foodnavigator-latam.com_.jpg?fit=854%2C534&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/10\/oilpalm_foodnavigator-latam.com_.jpg?fit=854%2C534&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":22652,"url":"https:\/\/gapki.id\/en\/news\/2023\/02\/03\/gapki-instead-of-eu-ri-should-tap-other-markets\/","url_meta":{"origin":29608,"position":2},"title":"GAPKI: Instead of EU, RI Should Tap Other Markets","author":"admin","date":"February 3, 2023","format":false,"excerpt":"Jakarta -- The World\u2019s largest palm oil producer Indonesia should not fear losing the European Union or EU, as the Southeast Asian country still has a lot of other markets to export its top commodity to, according to the Indonesian Palm Oil Association (GAPKI). \u201cPalm oil industry will continue to\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2023\/02\/palmoil_market_eu_foodnavigator-asia.com_.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2023\/02\/palmoil_market_eu_foodnavigator-asia.com_.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2023\/02\/palmoil_market_eu_foodnavigator-asia.com_.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2023\/02\/palmoil_market_eu_foodnavigator-asia.com_.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":29626,"url":"https:\/\/gapki.id\/en\/news\/2025\/04\/21\/anticipating-usa-tariff-palm-producers-seek-new-markets\/","url_meta":{"origin":29608,"position":3},"title":"Anticipating USA Tariff, Palm Producers Seek New Markets","author":"admin","date":"April 21, 2025","format":false,"excerpt":"JAKARTA -\u00a0Indonesian palm oil companies are seeking new markets in Europe, Africa and the Middle East as they try to protect themselves from the impact of President Donald Trump's trade war, a top industry executive told AFP. Indonesia is the world's biggest producer of the edible oil used in making\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/04\/sawit_kebun_palmoil_palmoilmagazine.com_.jpg?fit=753%2C475&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/04\/sawit_kebun_palmoil_palmoilmagazine.com_.jpg?fit=753%2C475&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/04\/sawit_kebun_palmoil_palmoilmagazine.com_.jpg?fit=753%2C475&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/04\/sawit_kebun_palmoil_palmoilmagazine.com_.jpg?fit=753%2C475&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":29571,"url":"https:\/\/gapki.id\/en\/news\/2025\/04\/08\/news-roundup-usa-tariff-threatens-palm-oil-ri-seeking-negotiations\/","url_meta":{"origin":29608,"position":4},"title":"News Roundup: USA Tariff Threatens Palm Oil, RI Seeking Negotiations","author":"admin","date":"April 8, 2025","format":false,"excerpt":"JAKARTA \u2013 Economic Coordinating Minister Airlangga Hartarto has stated that the high import tariff policy imposed by USA President Donald Trump will significantly affect the competitiveness of Indonesia\u2019s export products, including palm oil. \u201cThe increase of reciprocal import tariff by 32% imposed by President Donald Trump is potential to threaten\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/10\/kebun_sawit_palmoil_.webp?fit=805%2C460&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/10\/kebun_sawit_palmoil_.webp?fit=805%2C460&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/10\/kebun_sawit_palmoil_.webp?fit=805%2C460&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/10\/kebun_sawit_palmoil_.webp?fit=805%2C460&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":27286,"url":"https:\/\/gapki.id\/en\/news\/2024\/01\/16\/palm-oil-exports-predicted-to-decrease-this-year\/","url_meta":{"origin":29608,"position":5},"title":"Palm Oil Exports Predicted To Decrease This Year","author":"admin","date":"January 16, 2024","format":false,"excerpt":"JAKARTA - Indonesia\u2019s stagnant production of its top commodity palm oil amid rising domestic demand is projected to reduce its palm oil exports during this year (2024) by more than 4%. The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that the highest increase of palm oil production expected\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/01\/eddy_m_pakistan_sawitindonesia.com_.jpg?fit=684%2C428&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/01\/eddy_m_pakistan_sawitindonesia.com_.jpg?fit=684%2C428&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/01\/eddy_m_pakistan_sawitindonesia.com_.jpg?fit=684%2C428&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/04\/Eddy_Martono_Melalui_coroporate_insight.webp?fit=1536%2C864&ssl=1","_links":{"self":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/29608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/comments?post=29608"}],"version-history":[{"count":1,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/29608\/revisions"}],"predecessor-version":[{"id":29610,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/29608\/revisions\/29610"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media\/29609"}],"wp:attachment":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media?parent=29608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/categories?post=29608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/tags?post=29608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}