JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartanto stated that the government is still negotiating with the United States (US) to exempt several commodities from the tariff, allowing them to receive zero percent tariffs or tariff-free entry into the US.
For your information, the US has imposed a 19 percent import tariff on Indonesian goods, effective August 7, 2025. However, several goods are exempt, such as palm oil, coffee, and cocoa.
"The US tariffs are already in effect, and some are exempt. These exemptions are still being processed," he said when met at the Ministry of Finance building in Jakarta on Friday, August 22.
However, Airlangga could not confirm when the negotiations would be completed. He said there was no deadline for the negotiations. This means negotiations can continue until both parties reach an agreement.
"There's no deadline; this is a two-party agreement," he said.
Previously, Minister of Trade Budi Santoso revealed that the Indonesian government is still negotiating with the United States to allow several commodities not produced in the United States to receive zero percent import tariffs.
"We also want commodities not produced in America to receive zero percent (tariff-free) tariffs," he said when met at the Ministry of Trade Office in Jakarta on Thursday, August 7.
However, Budi did not elaborate on which commodities the government would pursue to obtain tariff-free status from the US.
"We'll talk about that later, we're still negotiating. Let's not talk about (the various products)," Budi said.
Budi believes tariff reductions are still possible, as the tariff rate was previously changed from 32 percent to 19 percent. However, the reciprocal tariff for Indonesia has already taken effect today.
"The reciprocal tariff will be effective on the 7th, while we continue negotiating. Because we were given the opportunity to negotiate. Hopefully, it will be finalized before September 1st. There are still many things we will strive to improve," he said.
For your information, the reciprocal tariff imposed by the US on Indonesia takes effect today, Thursday, August 7th.
The US has also announced this policy to 82 other countries.
Indonesia has successfully reduced the import tariffs imposed by the US from 32 percent to 19 percent.
Indonesia's tariff rate is one of the lowest in Southeast Asia.
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