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Indonesia Continue Negotiations with U.S., Secure 0% Import Tariffs on Several Essential Commodities

by Raidi
2025-07-22
in Economic
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Import Tariffs

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Jakarta, Indonesia Sentinel — The Indonesian government is continuing negotiations with the United States in an effort to secure zero import tariffs on a several Indonesian commodities exported to the U.S..

Speaking in Jakarta on Friday (July 19), Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso said there is still room for further talks, particularly for products deemed essential by the U.S., despite the reciprocal tariff rate having been set at 19 percent.

“President Prabowo Subianto said that the reciprocal tariff from President Donald Trump has been finalized at 19 percent. However, there’s still space for negotiation,” Susiwijono said, as quoted by state news agency Antara.

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He added that several Indonesian commodities, including crude palm oil (CPO), coffee, cocoa, and nickel are highly sought after in the U.S. and are not domestically produced there, making them strong candidates for a 0 percent tariff exemption.

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The negotiations are ongoing between a team led by Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, and the Office of the U.S. Trade Representative (USTR). According to Susiwijono, the list of products under discussion is extensive, featuring highly competitive goods that are strategically important to the U.S. market.

Details of the agreement will be outlined in a formal joint statement that will be made public. The document will include key components of the deal, such as reciprocal tariff rates, the resolution of non-tariff barriers, and broader commitments on trade and investment.

“It will all be included in the joint statement. We’ve already reached an agreement, and the final document is ready,” he said.

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Trump Announces 19% Tariff on Indonesian Imports, While U.S. Gains Full Access to Indonesian Resource

Susiwijono also clarified that not all U.S. goods would receive duty-free access to Indonesia. He noted that while around 99 percent of American products would benefit from zero tariffs, a small number of items may still face duties or import restrictions.

“So, not all products will be at zero percent. There are still some under discussion that might remain excluded,” he added.

Earlier, President Trump imposed a flat 19 percent import duty on all Indonesian goods entering the U.S., while U.S. products were granted zero-tariff access to the Indonesian market.

The agreement also includes Indonesia’s commitment to purchase $15 billion worth of American energy products, $4.5 billion in agricultural goods, and 50 Boeing aircraft.

 

(Raidi/Agung)

Tags: Import TariffsIndonesia newsTariffUnited States
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