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Indonesia Pushes for Tariff Exemptions on Palm Oil, Coffee Exports to US

Akmalal Hamdhi
July 18, 2025 | 4:50 pm
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A woman sorts coffee in a local coffee shop in Jakarta on November 22, 2024. (Beritasatu Photo/Ruht Semiono)
A woman sorts coffee in a local coffee shop in Jakarta on November 22, 2024. (Beritasatu Photo/Ruht Semiono)

Jakarta. Indonesia is pushing for zero tariffs on key export commodities to the United States despite Washington’s 19 percent import tariff on Indonesian products, a senior official said.

Susiwijono Moegiarso, secretary of the Coordinating Ministry for Economic Affairs, said there remains room for negotiation on reciprocal tariffs, with palm oil, nickel, coffee, and cocoa among the products Jakarta hopes can enter the US without duties.

“President has stated that the 19 percent reciprocal tariff from the Trump administration has been set, but there is still room to negotiate,” Susiwijono told reporters on Friday. “Some of our exports are needed by the US and cannot be produced there, so we will negotiate to get the tariff down to zero.”

Indonesia is still finalizing its list of commodities for the talks but is prioritizing products with strong US demand that are difficult to source domestically.

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At the same time, Indonesia will maintain import duties on certain US goods despite agreeing to zero tariffs on the vast majority of American imports. From 11,552 tariff lines under the Harmonized System, Indonesia has agreed to exempt 11,474 lines, or approximately 99 percent of US products, from import duties. The remainder, including alcoholic beverages and pork, is expected to continue facing tariffs.

“There are some products we are discussing that will not receive zero-tariff treatment,” Susiwijono said, adding that discussions on product classification are ongoing.

Indonesia Pushes for Tariff Exemptions on Palm Oil, Coffee Exports to US
Traders show soybeans imported from the United States at a market in East Jakarta. (Antara Photo/Sigid Kurniawan)

According to the United Nations COMTRADE database, the United States exported goods worth $10.2 billion to Indonesia in 2024. Top American exports to Indonesia include mineral fuels and oils, oilseeds such as soybeans, machinery, organic chemicals, aircraft, and electronic equipment, reflecting Indonesia’s growing demand for US energy, agricultural, and high-tech products.

Indonesia’s tariff exemptions align with its commitments under various free trade agreements, including the ASEAN Trade in Goods Agreement and deals with Australia, New Zealand, and Japan. The country recently concluded a comprehensive economic partnership agreement with the European Union that will allow nearly all Indonesian products to enter Europe duty-free.

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