Jakarta, July 18, 2025 – The Europe Today: The Government of Indonesia is actively pursuing negotiations with the United States to secure a zero percent import tariff on several key commodities, despite the recent announcement of a 19 percent reciprocal tariff, a senior official said on Friday.
Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, confirmed that President Prabowo Subianto has acknowledged the finalized reciprocal tariff rate of 19 percent with the United States. However, he noted that negotiations are still ongoing to exempt certain strategic commodities from this tariff.
“President Prabowo has announced that our reciprocal tariff with the US is set at 19 percent. However, there remains room for negotiation, particularly for commodities that are in high demand in the United States. We are working to achieve a zero percent tariff on these key products,” Moegiarso stated.
The Indonesian government has proposed that the zero percent tariff apply to crucial export commodities such as crude palm oil (CPO), coffee, cocoa, and nickel. These commodities are not only competitive but also considered strategic for the US market.
Moegiarso emphasized that a broad range of products is currently under discussion, with negotiations being led by Coordinating Minister for Economic Affairs, Airlangga Hartarto, in collaboration with the Office of the United States Trade Representative (USTR).
He added that the outcomes of the ongoing discussions would be formalized in a joint statement document. “This document will encompass all agreed aspects between the two governments, including reciprocal tariff arrangements, non-tariff barriers, and broader commitments on bilateral trade and investment,” he explained.
The development follows an earlier statement by former US President Donald Trump, who announced a 19 percent tariff on imports of Indonesian goods.
As part of the broader trade agreement, Indonesia has also committed to purchasing US$15 billion worth of energy products, US$4.5 billion worth of agricultural goods, and 50 Boeing aircraft from the United States.
Further details regarding the negotiations and finalized agreements are expected to be made public in the upcoming joint statement.
