Indonesia is actively seeking assurances from the United States that previously agreed-upon tariff exemptions for its key exports will be maintained, following the implementation of a new 10% U.S. tariff. This tariff was introduced amid concerns over forced labor enforcement and places Indonesia among the countries affected by the lower levy. Indonesian officials are in ongoing discussions with U.S. trade authorities, expressing hope that existing trade agreements will continue to allow duty-free access for significant exports such as crude palm oil, cocoa, coffee, and natural rubber.
In addition to these efforts, Indonesia is also anticipating the results of a separate U.S. investigation into structural excess capacity. The outcome of this investigation could potentially lead to further trade measures. The Indonesian government has committed to continuing negotiations aimed at securing competitive tariff rates to safeguard its exports.
The recent U.S. policy change also extends preferential treatment to certain Indonesian textile exports that incorporate U.S. cotton and other American materials. This aspect of the policy is seen as a positive development amidst the broader tariff concerns.
Trade between Indonesia and the United States has been robust, with bilateral trade reaching $18.4 billion during the first five months of 2026. Indonesia has reported a trade surplus of approximately $7 billion during this period, underscoring the importance of maintaining favorable trade conditions.