Prabowo Says Zero Percent US Tariff Negotiations Are Still Ongoing

JAKARTA - President Prabowo Subianto stated that negotiations between Indonesia and the United States regarding the application of a zero percent tariff for a number of commodities are still ongoing.

"Yes, we are still negotiating," Prabowo said on the sidelines of the 2025 APEC Summit series in Gyeongju, South Korea, Friday, October 31.

The negotiations are part of efforts to expand trade cooperation between the two countries, especially for certain commodities that are Indonesia's leading exports.

Coordinating Minister for Economic Affairs Airlangga Hartarto, on the same occasion, said further discussions with the US regarding the negotiations would be carried out after holding the APEC Summit.

He explained that the proposed commodities to get a zero percent rate are similar to those applied by Malaysia, such as palm oil, cocoa, rubber, and a number of other commodities that are not produced in the United States.

Airlangga also said that for critical minerals or critical minerals, discussions would be carried out separately.

"Critical minerals are discussed themselves, related to the supply chain and in the joint statement we call it industrial communities," he said.

It is known, Indonesia is aiming for the results of negotiations with the United States to reduce tariffs on palm oil by up to 0 percent, as agreed between the United States and Malaysia.

"This (line palm tariff negotiations) is still in process. Hopefully in discussions, at least we can be the same as Malaysia," said Acting Director General of Agro Industry at the Ministry of Industry Putu Juli Ardika in Jakarta, Wednesday (29/10).

The statement was related to Malaysia's success in fighting for a reduction in import rates to the United States from a previous value of 25 percent to 19 percent as stipulated in the newly signed reciprocal rate agreement with the US.

For leading Malaysian products such as palm oil, rubber products, wood products, flight components, and pharmaceutical products, the US has exempted from the 19 percent tariff, aka being 0 percent or free of tariffs.

Indonesia hopes to get the results of similar negotiations from the United States.

With a tariff of 0 percent for Indonesian palm oil products entering the United States, Putu hopes that Indonesia can occupy a position of competition that is equivalent to Malaysia in the United States market.