The senior government official stated on Friday that Indonesia plans to request export exemptions for palm oil and nickel under its new trade agreement with the United States. The United States and Indonesia continue to work on finalizing trade terms before August while seeking exemptions for their major export products including palm oil and nickel.
The agreement reduced the initial 32% tariff to 19% but Jakarta continues to seek exemptions for its cocoa and rubber exports as well as crude palm oil. The United States depends on Indonesia for 85% of its palm oil imports since Indonesia maintains its position as the global leader in palm oil production.
The economic ministry official Susiwijono Moegiarso explained that the new tariff rate will apply in addition to current duties. The negotiations involve discussions about exempting U.S. technology products from Indonesia’s local content requirements.
The revised agreement supports our export development according to Susiwijono who continues to negotiate favorable terms for domestic producers.
Under the agreement Indonesia will acquire Boeing aircraft for Garuda national carrier while Pertamina will increase U.S. energy imports after necessary reviews.
The majority of American goods will receive exemption from Indonesian tariffs with the exception of alcohol and pork products and specific imports that must adhere to quota restrictions.
The agreement stands as one of the few tangible trade achievements for the Trump administration before its August deadline for negotiations.
