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Indonesia Seeks Further Tariff Cuts In Ongoing Talks With United States

Even with a secured 19-percent import tariff, Indonesia is determined to pursue further tariff reductions in its trade talks with the United States.

Indonesia Seeks Further Tariff Cuts In Ongoing Talks With United States

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Indonesia is continuing trade negotiations with the United States despite having secured a 19-percent import tariff on Indonesian products.

“We want zero-percent tariffs on commodities that the US does not produce,” Trade Minister Budi Santoso said in Jakarta on Thursday.

Talks will continue until September 1, he added, noting that there is still room for reciprocal tariff adjustments.

The current 19-percent tariff was previously reduced from 32 percent.

Santoso also noted that US President Donald Trump has allowed Indonesia the opportunity to negotiate further.

Indonesia plans to use this window to request zero import tariffs on products not produced in the US, although Santoso did not specify which commodities.

The 19-percent tariff officially took effect on Thursday, August 7.

It is part of a broader deal agreed between President Prabowo Subianto and President Trump, under which US exports to Indonesia will be exempt from both tariff and non-tariff barriers.

With the tariff now at 19 percent, Indonesia has one of the lowest US-bound export tariffs in Southeast Asia, though still higher than Singapore’s 10 percent.

Earlier, Coordinating Minister for Economic Affairs Airlangga Hartarto said that copper concentrates and copper cathodes are among the products already granted zero tariffs, in line with strategic mineral trade talks between the two countries.

Indonesia is also pushing for zero tariffs on other key exports, including crude palm oil, rubber, meranti (Shorea) wood, and copper derivative products. (PNA)