Jakarta. The US has barred imports from two Indonesian palm oil producers over alleged forced labor practices.

According to a recent notice, the US Customs and Border Protection (CBP) rolled out “withhold release orders” that would let the agency detain palm oil shipments from Indonesia’s Mitra Aneka Rezeki and Hardaya Inti Plantation. They will be subject to immediate detention at all US port entries.

“Exploiting workers is inhumane and damaging to our economic and national security,” CBP Office of Trade Executive Assistant Commissioner Susan S Thomas said in a statement.

“Not only are these workers suffering from lack of proper conditions and pay, but the goods they are forced to produce can put American businesses and consumers at risk.”

The agency claimed to have conducted a thorough review of the affected companies, including analyzing payroll slips, interview transcripts, harvest quota information, and academic research, to name a few. CBP claimed that the workers had to cope with abusive working conditions and had their wages withheld. There were also overtime violations.

The palm oil importers may export their detained shipments out of the US or seek to destroy the detained goods. They have the option to demonstrate that the merchandise was not produced with forced labor.

Estimates run by the producer group Gapki show that Americans have a huge appetite for Indonesian palm oil. Indonesia holds the lion’s share of the US palm oil market at around 89%, with Malaysian producers serving the remaining customers. 

Indonesia’s palm oil exports totaled $17.75 billion in January-August 2026, according to the statistics bureau BPS.

The US has used the same forced labor rationale to impose new double-digit tariffs on Indonesia and other trading partners. Amid the import ban and tariff salvo, Indonesia’s overall US trade surplus had widened to $12.47 billion in January-August 2026, up from $12.26 billion seen last year.

Airlangga University economics professor Rahma Gafmi told the Jakarta Globe that the growing positive trade balance did not mean Jakarta could rest on its laurels.

“Many modern sanctions or tariff-tightening measures are framed around labor standards, among others,” Rahma said.

“Strengthening domestic industry governance to align with global standards — including sustainable labor and environmental practices — will narrow the scope for trading partners to impose unilateral barriers.”

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