PALMOILMAGAZINE, JAKARTA — The United States has officially reduced import tariffs on several key commodities from Indonesia, a move welcomed by the Indonesian government as a positive step toward strengthening bilateral trade relations.
This announcement was made by Coordinating Minister for Economic Affairs Airlangga Hartarto during a press conference in Jakarta on Thursday (July 24, 2025). According to Airlangga, the commodities receiving tariff reductions include palm oil, coconut, rubber, coffee, and cocoa.
“Commodities such as palm oil, rubber, coffee, and cocoa have received tariff cuts from the U.S. This opens up greater export potential for us,” said Airlangga.
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Beyond this, Indonesia is also advocating for equal treatment in Free Trade Zones (FTZs), especially concerning specific industrial components. Airlangga pointed to one factory producing healthcare components that has not yet benefited from the zero-percent tariff enjoyed by factories in other countries.
“We’re calling for fair treatment in Free Trade Zones, particularly for certain industrial components like those in the healthcare sector, to help Indonesian manufacturers compete more effectively in the U.S. market,” he said.
Regarding rules of origin, Airlangga confirmed that discussions with the U.S. are still ongoing. He emphasized that Indonesia does not engage in “transfer payment” practices—an issue previously raised with other countries.
“The rules of origin are still under discussion. They’ve referred to the Vietnam case, but we’ve made it clear that Indonesia does not carry out transfer payments. Therefore, it’s crucial for both sides to agree on clear definitions of vendors and production coverage,” he added.
The Indonesian government hopes that a trade agreement with the U.S. will be finalized soon, enabling domestic industries to gain broader market access and benefit from reduced tariff burdens. (P2)
