double-skinned crabsVietnamese crab exportergood crabexellent crab

Indonesia to Remain Top Palm Oil Supplier for US Thanks to Tariff Deal

Jayanty Nada Shofa
July 17, 2025 | 7:21 pm
SHARE
President Donald Trump listens to Jeff Crowe speak during an event on energy production in the East Room of the White House, Tuesday, April 8, 2025, in Washington. (AP Photo/Alex Brandon)
President Donald Trump listens to Jeff Crowe speak during an event on energy production in the East Room of the White House, Tuesday, April 8, 2025, in Washington. (AP Photo/Alex Brandon)

Jakarta. Indonesia is set to maintain its dominance in the American palm oil market after the US agreed to slash its reciprocal tariff on Jakarta from 32 percent to 19 percent, much lower than its competitor, Malaysia.

Malaysia, meanwhile, is facing a tariff of 25 percent based on US President Donald Trump’s letter issued last week. Additionally, the US government has already imposed a 10 percent baseline tariff on both palm oil-producing countries, just like the rest of the world.

Agriculture Minister Andi Amran Sulaiman said Thursday that the tariff rate gap could give Jakarta an edge on Malaysia in palm oil trade with the US.

“Our only competitor in crude palm oil [CPO] is Malaysia, isn’t it? And this is a golden opportunity for our agriculture sector,” Andi told reporters in Jakarta. 

ADVERTISEMENT

The Indonesian Palm Oil Association (Gapki) data showed that the country had exported 2.2 million tons of palm oil to the United States last year, reaching around $2.9 billion in value. Indonesia accounts for around 85 percent of US palm oil imports.

Fadhil Hasan, the international affairs head at Gapki, recently warned that the US might turn to Malaysian palm oil if Jakarta failed to secure a lower tariff. The higher the tariff, the more expensive overseas goods will become for American consumers.

News agency Bernama reported that the US had bought 191,000 tons of Malaysian palm oil last year. This was equivalent to about 10 percent of US palm oil imports.

Malaysian Trade Minister Tengku Zafrul Aziz said that his country was still negotiating with Trump's government following Indonesia's deal. According to Zafrul, Kuala Lumpur is aiming for a “win-win” outcome.

“We still have time. Most importantly, we must ensure that this is a negotiation beneficial to both countries,” Zafrul said in Kuala Lumpur on Wednesday, as quoted by local news outlet The Star. 

Malaysia's 25 percent tariff rate is also up by a percentage point from the initial 24 percent levy announced in April.

Tags: Keywords:
Google Add Investor.id as a preferred source on Google +
SHARE

Related Articles


Business Sep 25, 2026 | 3:29 pm

CPO Export Data Gap Does Not Prove Rp 600 T Revenue Loss: Economist

CPO trade data gaps do not prove Rp 600 trillion in state revenue losses, economist Herry Gunawan says, urging further scrutiny.
Business Sep 22, 2026 | 1:39 pm

Indonesia Prepares Up to 2 Million Hectares for Bioethanol Feedstock

Indonesia is preparing up to 2 million hectares for sugarcane, cassava and corn to support its planned bioethanol expansion.
News Sep 15, 2026 | 12:41 pm

Fortified Rice Scandal: Indonesia Flags 25 Brands, Cites $5b Consumer Loss

Indonesia flags 25 fortified rice brands over alleged mislabeling, with consumer losses estimated at Rp89 trillion.
Business Sep 1, 2026 | 9:37 am

Indonesia Ensures El Niño Won't Take Toll on Palm Oil Production

World's largest palm oil supplier Indonesia says it will make sure that the El Niño will not take a toll on production.
News Aug 31, 2026 | 11:47 am

Agriculture Minister Fires 13 Officials Over Online Gambling

Indonesia’s Agriculture Ministry fired 13 officials over online gambling as bets circulated Rp86.82 trillion in the first half of 2026.
Business Aug 2, 2026 | 11:52 pm

Indonesia Sets August CPO Reference Price at $996.52 per Ton

Indonesia lowered its August CPO reference price to $996.52 per ton, reducing the export duty on palm oil shipments.
Business Jul 31, 2026 | 10:44 am

Downstream Products Now Account for Over 80% of Indonesia's Palm Oil Exports

Palm oil remains one of Indonesia's leading export commodities, generating more than $20 billion in annual export revenue.
Business Jul 27, 2026 | 1:15 pm

Indonesia Banks On EU as Trump's 10% Tariff Kicks In

Indonesia wants to fast-track its European Union (EU) trade deal as Jakarta tries to find alternatives to the tariff-agressive US.
Business Jul 24, 2026 | 10:14 am

US Slaps 10% Tariff on Indonesia over Forced Labor

A new 10% tariff on Indonesia following a forced labor probe will take effect on Friday before noon.
Business Jul 15, 2026 | 12:48 am

Indonesia Targets $5.5 Billion in Coffee Exports

Amran said coffee has the potential to become one of Indonesia's leading agricultural export commodities.

The Latest


News 2 hours ago

UN Boss Wants to Fix Security Council as Indonesia Seeks Seat

Outgoing UN chief Guterres says the current permanent member setup at the Security Council fails to reflect today's realities.
News 2 hours ago

Saudi Flagship Investment Conference Pushed to 2027 after Houthi Attacks

The annual Future Investment Initiative (FII), often dubbed "Davos in the Desert", was originally scheduled to take place from October 26-29
Business 2 hours ago

Government Sets Aside Rp 1.3 Quadrillion for Final-Quarter Spending

Government spending has reached Rp 2.66 quadrillion, equivalent to 69.2% of the full-year budget target of Rp 3.84 quadrillion.
News 3 hours ago

Indonesia Probes 98 Corporate Wildfire Cases, Including Possible Foreign Links

Police investigate 98 corporate-related wildfire cases, including possible links to investors from neighboring countries.
News 4 hours ago

Students Plan Jakarta Protests to Mark Two Years of Prabowo's Presidency

Police have advised the public to avoid areas around the House of Representatives complex, the National Monument and the State Palace.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED