Indonesia is currently engaging with U.S. trade officials to ensure that its key exports continue to benefit from previously agreed tariff exemptions following the introduction of a new 10% tariff by the United States. This tariff, which is part of measures related to the enforcement of forced labor laws, has placed Indonesia among the countries subjected to this lower levy. Indonesian authorities are optimistic that their existing trade agreements will secure duty-free access for significant exports including crude palm oil, cocoa, coffee, and natural rubber.
In addition to seeking confirmation on tariff exemptions, Indonesia is also anticipating the results of a separate investigation by the U.S. into structural excess capacity. This investigation could potentially lead to further trade measures that might affect Indonesian exports. To mitigate any adverse impacts, the Indonesian government is committed to ongoing negotiations with the U.S. to maintain competitive tariff rates and safeguard its export market.
The new U.S. tariff policy does, however, extend preferential treatment to certain Indonesian textile exports that incorporate U.S. cotton and other American-sourced materials. This aspect of the policy highlights an opportunity for Indonesia to continue benefiting from its trade relations with the U.S., despite the new tariffs.
Trade between Indonesia and the United States is substantial, with bilateral exchanges totaling $18.4 billion in the first five months of 2026. During this period, Indonesia maintained a trade surplus of approximately $7 billion. These figures underscore the importance of ensuring smooth trade relations and favorable terms for Indonesian exports.
