InfoSAWIT, JAKARTA – The United States government has announced a reduction in tariffs for several commodities from Indonesia. This was conveyed by Coordinating Minister for Economic Affairs, Airlangga Hartarto, during a press conference in Jakarta on Thursday (July 24, 2025).

According to Airlangga, the commodities benefiting from the tariff reductions include palm oil, coconuts, rubber, coffee, and cocoa. This policy is seen as a positive step in strengthening trade relations between Indonesia and the US. “Commodities such as palm oil, rubber, coffee, and cocoa have received tariff reductions from the United States. This certainly opens up export opportunities for us,” Airlangga stated.

In addition, Indonesia is also advocating for equal treatment within the Free Trade Zone, particularly for certain industrial components. He mentioned a factory producing components for the healthcare sector and others that have not yet enjoyed the 0% tariff rate like other countries. “For the Free Trade Zone, we are also requesting tariff equality, especially for specific industrial components, such as healthcare, to enhance our competitiveness in supplying needs in the United States,” Airlangga added.

Regarding rules of origin, Airlangga noted that discussions with the US are still ongoing. He emphasized that Indonesia does not engage in transfer payment practices, which have been highlighted in relation to other countries. “When it comes to rules of origin, this is still under discussion. They cited the case of Vietnam. However, we assert that Indonesia does not practice transfer payment. Therefore, it is crucial for us to agree on a clear definition of vendors and the scope of production,” he elaborated.

The government hopes that the trade agreement with the US can be finalized soon so that national industry players can enjoy broader market access with lighter tariff burdens. (T2)