The Government Proposes That CPO, Cocoa, And Coffee Should Not Be Subject To Import Tariffs From The United States

The Indonesian government has proposed export products such as cocoa, coffee, and crude palm oil (CPO) to secure a zero percent import tariff from the United States, as part of ongoing negotiations with the superpower.

"Therefore, the products that are in high demand in America and cannot be produced domestically will be included in this list, such as CPO, cocoa, and coffee," stated Susiwijono, the Secretary of the Coordinating Ministry for Economic Affairs, in a statement quoted in Jakarta on Friday.

Susiwijono mentioned that the government is preparing a list of export products to be submitted for tariff-free entry into the U.S.

CPO, cocoa, and coffee meet three main criteria as they are key export commodities for Indonesia, are not produced in the U.S., and are required by consumers in the land of Uncle Sam.

Discussions regarding the list of products proposed for a zero percent tariff involve all stakeholders and are expected to be completed in the near future.

Indonesia has successfully reduced U.S. tariffs on its products from 32 percent to 19 percent. This 19 percent tariff is currently lower than that of other Southeast Asian countries, such as Thailand (36 percent), Laos (40 percent), Malaysia (25 percent), and Vietnam (20 percent).

Susiwijono stated that the agreement to reduce import tariffs from the United States (US) on Indonesian products is the result of direct negotiations between President Prabowo Subianto and US President Donald J. Trump.

The negotiations were conducted via telephone while Prabowo was returning from Belarus.

"After President Prabowo communicated with President Trump on July 15-16, 2025, it was decided that the tariff on products originating from Indonesia would decrease to 19 percent, as we have met all the requests of the US government," he said.

He explained that the reduction of the tariff from 32 percent to 19 percent is part of a lengthy negotiation process that began in early April 2025.

During this process, Indonesia engaged in technical negotiations with three key institutions in the US: the Office of the United States Trade Representative (USTR), the Department of Commerce, and the Department of the Treasury.

According to Susiwijono, these technical negotiations covered four main issue areas: tariffs, non-tariff barriers, trade balance, and investment. He noted that Indonesia has been the fastest country to conclude negotiations.

"In fact, the US side appreciated our approach, which was deemed more concrete and comprehensive," he remarked.

Tag: Cocoa CPO Import Tariff Susiwijono