Indonesia still negotiating details, exemptions on US tariff deal, official says

Reuters
2025/07/18
UPDATE 2-Indonesia still negotiating details, exemptions on US tariff deal, official says

Adds more details from Indonesia's economic ministry statement in paragraph 9-10

JAKARTA, July 18 (Reuters) - Indonesia is still negotiating details of its recently-reached trade deal with the United States after Washington 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.

The two countries reached a trade deal this week that led to a reduction in the threatened U.S. proposed tariff rate to 19% from 32%. The deal was one of only a handful reached so far by the Trump administration ahead of the August 1 negotiation deadline with numerous countries.

Susiwijono Moegiarso, a senior official at the country's economic ministry, told reporters that the two sides were still negotiating the finer details of the agreement, adding that the 19% 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, coffee and nickel from the levy, he said, adding that U.S. 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% 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 GIAA.JK from Boeing, and its state energy firm Pertamina PERTM.UL will also import energy from the United States, subject to business reviews, Susiwijono said.

He added that all U.S. goods imported into Indonesia will face zero tariffs, with the exception of alcoholic drinks and pork, and some U.S. goods will be exempted from import quota rules.

A statement from Indonesia's economic ministry said the trade deal with U.S. included agreement of easier import permits for U.S. goods, protection of intellectual property rights, and for Indonesia to comply with international standard on export and import of goods with nuclear components.

(Reporting by Stefanno Sulaiman; Writing by Stanley Widianto; Editing by David Stanway and Kim Coghill)

((Widianto.Stanley@thomsonreuters.com;))

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