Airlangga Flies to the US, Targets Zero Palm Oil Tariffs Through Bilateral Agreements

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto has ensured that Indonesia and the United States are entering the final phase of trade negotiations, with a focus on the exemption of tariffs on strategic commodities, especially palm oil.

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The Indonesian team is already in the United States and has started discussions, while Airlangga is scheduled to leave for there two days later.

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Airlangga emphasized that the tariff exemption was actually listed in executive orders. However, palm oil will be discussed specifically through a bilateral mechanism. The target is clear: zero percent tariff.

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"The negotiations are final. Now what is discussed is the legal drafting," said Airlangga at the Presidential Palace, Jakarta, Monday, December 15. He hopes that the entire process can be completed soon.

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The discussion in the US will be carried out with the counterpart from the US Trade Representative's Office (USTR).

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The list of commodities that are included in the tariff exemption scheme has been exchanged by both parties.

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Until now, according to Airlangga, there has been no new development from the US beyond what has been discussed.

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Regarding the involvement of the head of state, Airlangga ensured that President Prabowo Subianto was not directly present in the US at this stage.

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However, President Prabowo's meeting with US President Donald Trump will be arranged separately after the technical negotiation process is completed.

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"The signing by the president is usually done after everything is finished. We wait for the results of the discussion," he said.

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Airlangga said the new agreement would be valid after it was signed, with an implementation time to be agreed upon.

"The target can be completed. Regarding the signature, it is possible next year," said Airlangga.

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He opened the possibility of a signing being made next year.

"The target can be completed. Regarding the signature, it is possible next year," said Airlangga.

This negotiation is considered crucial because it will determine the position of Indonesia's flagship commodities in the US market, as well as reducing the tariff burden for national exports.