JAKARTA: Indonesia is still finalising details of its recent trade agreement with the United States, which lowered proposed tariffs to 19% from 32%.
The deal, one of few secured by the Trump administration ahead of the August 1 deadline, remains under negotiation as Indonesia pushes for exemptions on key exports like palm oil and nickel.
Susiwijono Moegiarso, a senior official at Indonesia’s economic ministry, confirmed ongoing discussions.
“The 19% rate will apply on top of existing sectoral tariffs,“ he said. Indonesia has requested exemptions for cocoa, rubber, crude palm oil, and nickel exports.
In return, US technology products will be exempt from Indonesia’s “local content” rules, which mandate the use of locally made components in manufacturing.
As the world’s largest palm oil producer and the top supplier to the US, Indonesia accounts for 85% of US palm oil 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.”
The agreement also includes commitments beyond tariffs. Indonesia will purchase Boeing jets for its flag carrier, Garuda Indonesia, while state energy firm Pertamina will import US energy products, pending business reviews.
Additionally, most US goods entering Indonesia will face zero tariffs, except for alcoholic beverages and pork, with some products also exempt from import quotas. - Reuters
