Indonesia is actively seeking assurances from the United States regarding the continuation of previously agreed tariff exemptions on key exports following the imposition of a new 10% tariff by the U.S. This latest tariff, driven by concerns over forced labor practices, places Indonesia among the countries subjected to this lower levy. Indonesian officials are maintaining close communication with U.S. trade authorities in hopes that existing agreements will ensure duty-free access for crucial products like crude palm oil, cocoa, coffee, and natural rubber.
In addition to addressing the new tariff, Indonesia is also anticipating the results of a separate U.S. investigation into structural excess capacity. The outcome of this investigation could lead to further trade measures, prompting Indonesian authorities to engage in continued negotiations aimed at securing competitive tariff rates and safeguarding their exports.
The new U.S. tariff policy, however, does offer some preferential treatment for certain Indonesian textile exports that incorporate U.S. cotton and other American-sourced materials. This aspect of the policy could potentially benefit Indonesian manufacturers by providing more favorable conditions for specific textile products.
In the broader context of trade, Indonesia reported substantial bilateral trade with the United States, amounting to $18.4 billion during the first five months of 2026. This period also saw Indonesia enjoying a trade surplus of approximately $7 billion, underscoring the significant economic relationship between the two nations.