Indonesia to Propose Tariff Reductions to U.S., Highlighting Palm Oil Exports
Indonesia is preparing to propose further reductions to the current 19 percent U.S. reciprocal tariffs during discussions scheduled for the second week of September. the indonesian delegation will offer increased exports of key commodities not produced in the United States, with palm oil identified as a priority, according to Indonesian Ambassador to the U.S., Soesilo.
In an interview with ANTARA in Jakarta on Tuesday, Ambassador Soesilo explained the strategy. “For the moment, Indonesia will propose reduced tariffs for commodities that are not produced in the U.S. for example, the U.S. needs a lot of palm oil. So, if we export palm oil, hopefully the tariff will not remain at 19 percent but will be reduced further,” he stated.
Beyond palm oil, Indonesia intends to propose tariff reductions on exports including shrimp - currently valued at nearly US$2 billion annually - as well as timber, furniture, copper, and nickel. the ambassador also pointed to potential growth in the garment and apparel sectors, citing a significant U.S. market. “Actually, Indonesia has a very good competitive edge to increase our textile, apparel, and garment exports to the U.S. From our side, let’s work more efficiently. Our exports in this sector can be expanded,” Soesilo added.
While Ambassador Soesilo did not confirm a specific target, such as a zero percent tariff, he expressed optimism that offering key export commodities would lead to further tariff reductions. ”we will see. Let us give our delegation in the U.S. time to discuss with their counterparts to find the best way forward for both countries,” he remarked.
Indonesia’s exports to the U.S. reached US$26 billion in 2024, significantly exceeding U.S.exports to indonesia,which totaled US$10 billion,resulting in a US$16 billion trade surplus for Indonesia.
Ambassador Soesilo emphasized the shared goal of a more balanced trade relationship.”That means indonesia has a surplus of US$16 billion. The U.S. would like to see more balance, but Indonesia also wants growth. Both sides should find ways to achieve this together,” he said.
The current 19 percent reciprocal tariff represents a reduction from the original 32 percent,achieved through direct communication between President Prabowo Subianto and U.S. President Donald trump. Negotiations are ongoing in Washington, D.C.,with the aim of securing a zero-tariff arrangement for select products,as the U.S. remains open to continued dialog.
Reporter: Kuntum Khaira Riswan
Editor: M razi Rahman
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