Indonesia lobbies US for palm oil tariff exemption

Indonesia is intensifying its diplomatic efforts to persuade the United States to exempt palm oil exports from additional tariffs. This move comes as the US finalizes broader trade policies after an investigation into labor practices and industrial capacity.

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We ask that palm oil be excluded

Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that Indonesia has formally requested tariff exemptions from the US, stating, "We ask that palm oil be excluded." Jakarta now awaits a phased review by US trade authorities. This push follows the US Trade Representative's office imposing a 10% tariff on several Indonesian goods, a decision stemming from a Section 301 investigation that highlighted concerns about forced labor in global supply chains.

Airlangga noted that Indonesia is among 17 countries and territories facing the 10% tariff, with nations deemed less compliant with anti-forced labor standards facing a higher 12.5% tariff. He emphasized that US findings indicate Indonesia is "relatively compliant" compared to many of the 60 evaluated countries. While the forced labor investigation is ongoing, a separate US investigation into industrial overcapacity remains incomplete.

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The issue of overcapacity is still under investigation, and we have answered all questions related to it.

"The issue of overcapacity is still under investigation, and we have answered all questions related to it," Airlangga stated. Indonesian officials have submitted comprehensive responses to Washington's inquiries and are awaiting a decision. The government anticipates the US will soon announce the results of the overcapacity investigation. Indonesia remains hopeful that the final determination will lead to favorable trade conditions for Southeast Asia's largest economy, especially concerning its primary agricultural exports.

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The US government is expected to announce the results of the overcapacity investigation soon.