Indonesia still negotiating details, exemptions on US tariff deal, official says
A container truck is unloaded from a truck at Tanjung Priok Port, following the announcement that US President Donald Trump would impose tariffs of 32 per cent on goods from Indonesia, in North Jakarta, Indonesia, on Jul 8, 2025. (File photo: REUTERS/Ajeng Dinar Ulfiana)
JAKARTA: Indonesia is still negotiating the details of its recently-reached trade deal with the United States after the latter lowered tariff rates on the Southeast Asian country, and is pursuing exemptions for its exports of palm oil and nickel, an official said on Friday (Jul 18).
The two countries reached a trade deal that led to a reduction in the proposed tariff rate to 19 per cent from 32 per cent. The deal was one of only a handful reached so far by the Trump administration ahead of the Aug 1 negotiation deadline.
Susiwijono Moegiarso, a senior official at the country's economic ministry, told reporters that the two countries are still negotiating the fine details of the agreement, adding that the 19 per cent rate will be imposed on top of existing sectoral tariffs.
Indonesia has asked the United States to exempt its exports of cocoa, rubber, crude palm oil and nickel from the levy, he said, adding that US technology products will also be exempted from Indonesia's "local content" rules, which require companies to use locally-made components in its manufacturing.
Indonesia is the world's biggest palm oil producer and the biggest supplier to the United States, accounting for 85 per cent of its total imports in 2024.
"This is a good opportunity, this will become a good factor for us," Susiwijono said. "The deal should be good to support our exports."
Indonesia will also buy jets for its flag carrier Garuda Indonesia from Boeing, and its state energy firm Pertamina will also import energy from the United States, subject to business reviews, Susiwijono said.
He added that all US goods imported into Indonesia will face zero tariffs, with the exception of alcoholic drinks and pork, and some US goods will be exempted from import quota rules.
