Indonesia still negotiating details, exemptions on U.S. tariff deal, official says
The two countries reached a trade deal that led to a reduction in the 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.
Susiwijono Moegiarso, a senior official at the country's economic ministry, told reporters that the two countries are still negotiating the fine 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 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), opens new tab 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.
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