TEMPO.CO, Jakarta – The Indonesian government is in ongoing tariff negotiations with the United States, targeting zero-percent tariffs for several key export commodities. This initiative would allow certain Indonesian products to enter the U.S. market duty-free. The official list of these commodities has been submitted to the U.S. Trade Representative (USTR).
“We have submitted a list of commodity programs, including cocoa, coffee, palm oil, and mineral products,” said Susiwijono Moegiarso, Secretary to the Coordinating Ministry for Economic Affairs, at Lippo Mall Nusantara in Jakarta on Thursday, August 14, 2024.
According to Susiwijono, the government is strategically proposing commodities that are not produced in the U.S. but have significant export potential for Indonesia. This effort is considered vital, as the 19 percent reciprocal tariff, which applies to 90 percent of Indonesian commodities, does not always translate into substantial exports to the U.S.
“Those [commodities potentially subject to zero-percent tariffs] are more important because they are concrete. They have export potential,” he explained.
Having submitted the list to the U.S., the government is now awaiting a schedule to continue negotiations with the USTR. Susiwijono expressed that the negotiations would proceed as soon as a date is set.
The U.S.’s reciprocal 19 percent tariff on Indonesian products is set to take effect on August 7, 2025. According to Trade Minister Budi Santoso, this tariff could still be advantageous for Indonesia, as it is lower than the tariffs currently imposed on three of Indonesia’s main competitors in the U.S. market: China, Vietnam, and India.
Budi believes that with a lower tariff than its competitors, Indonesian goods will be in a better position to compete in the U.S. He is optimistic that Indonesian-made products will find it easier to enter the U.S. market, especially if consumer demand remains strong.
“We are one step ahead of other countries,” Budi said during a press briefing at the Ministry of Trade Auditorium on Wednesday, August 6, 2025.
Alfitria Nefi P and Alif Ilham Fajriadi contributed to the report.
Editor’s Choice: 19% US Tariffs Start Tomorrow, Govt Expresses Optimism for Indonesia’s Gains
Click here to get the latest news updates from Tempo on Google News