Indonesia is actively seeking assurances from the United States to uphold previously established tariff exemptions on significant exports following the imposition of a new 10% tariff by the U.S. The recent tariffs, implemented due to concerns about forced labor, include Indonesia among the countries subject to the lower levy. Indonesian authorities are maintaining close communication with U.S. trade officials, expressing hope that existing agreements will continue to allow duty-free access for essential exports like crude palm oil, cocoa, coffee, and natural rubber.
In addition to the tariff concerns, Indonesia is also awaiting the results of a separate U.S. inquiry into structural excess capacity, which could lead to further trade-related actions. The Indonesian government has emphasized its commitment to ongoing negotiations aimed at securing favorable tariff rates to protect its export economy.
The new U.S. trade policy also provides preferential treatment for certain Indonesian textiles that incorporate U.S. cotton and other American materials. This aspect of the policy highlights the nuanced trade relationship between the two nations, where some sectors benefit from collaborative inputs.
Trade between Indonesia and the United States has been robust, with bilateral exchanges reaching $18.4 billion in the first five months of 2026. During this period, Indonesia enjoyed a trade surplus of approximately $7 billion, underscoring the economic significance of maintaining favorable trade terms.