InfoSAWIT, JAKARTA – The Indonesian government is vigorously pushing for national palm oil products to enjoy a zero percent tariff when entering the US market. This step is expected to place Indonesia on par with Malaysia, which has already obtained similar facilities from Uncle Sam.

Acting Director General of Agro Industry at the Ministry of Industry (Kemenperin), Putu Juli Ardika, revealed that negotiations between Indonesia and the US are still ongoing. The government is optimistic that the ongoing discussions will result in an agreement beneficial to the national palm oil industry.

“The palm oil tariff negotiations are still underway. Hopefully, in the subsequent discussions, at least we can obtain the same treatment as Malaysia,” said Putu on the sidelines of the Agro Industry Exhibition at the Kemenperin office, Jakarta, Wednesday (29/10/2025).

As is known, Malaysia has just signed a reciprocal tariff agreement with the United States that reduces import tariffs from 25 percent to 19 percent. Furthermore, the US even provides full exemption (0 percent tariff) for several Malaysian flagship commodities, including palm oil, rubber products, wood products, aviation components, and pharmaceuticals.

Indonesia also considers similar policies important to maintain the competitiveness of national palm oil exports, given that the US is one of the potential markets outside Asia and Europe.

“With a 0 percent tariff, we can compete more fairly with Malaysia in the US market,” emphasized Putu.

This negotiation step is also in line with the government's strategy to expand palm oil export markets to non-traditional countries, while strengthening Indonesia's economic diplomacy in the global agribusiness sector.

If successful, this zero-tariff policy will open up significant opportunities for national palm oil industry players to expand market share and increase export foreign exchange, while strengthening Indonesia's position as the world's largest palm oil producer. (T2)