Indonesia is actively seeking assurances from the United States that previously agreed-upon tariff exemptions for its major exports will be maintained, as a new 10% U.S. tariff takes effect. This tariff, implemented due to concerns over forced labor enforcement, categorizes Indonesia among the nations subjected to the lower levy. Indonesian authorities have expressed their intent to maintain close communication with U.S. trade officials, aiming to ensure that existing trade agreements continue to facilitate duty-free access for exports including crude palm oil, cocoa, coffee, and natural rubber.
In addition to these efforts, Indonesia is awaiting the results of a separate U.S. investigation into structural excess capacity, which could potentially lead to further trade measures. Indonesian government officials have affirmed their commitment to ongoing negotiations to secure competitive tariff rates and safeguard the nation’s export interests.
Furthermore, the revised U.S. policy grants preferential treatment to certain Indonesian textile exports that incorporate U.S. cotton and other American inputs. This aspect of the policy underscores the interconnected nature of the bilateral trade relationship.
The economic ties between Indonesia and the United States are significant, with reported bilateral trade reaching $18.4 billion during the first five months of 2026. Notably, Indonesia achieved a trade surplus of approximately $7 billion within this period, highlighting the importance of maintaining favorable trade conditions.