Airlangga Proposes Palm Oil Exemption from Trump's 10% Tariff

Jakarta, CNBC Indonesia — Coordinating Minister for Economic Affairs Airlangga Hartarto plans to seek exemptions for several export commodities from the 10% tariff imposed by the United States.

Airlangga said that with regard to the 10% tariff under Section 301 on forced labour, Indonesia has officially been included among 17 countries after being assessed as compliant. Regarding the list of affected goods, his office is currently considering that palm oil exports be exempted from the 10% tariff.

“If we refer to Section 301 on forced labour, it has indeed been announced that Indonesia is relatively compliant compared with other countries. Initially it was part of a group of 6 out of 60 countries, but according to the latest calculation, that figure of 6 countries has risen to 17. As for palm oil, we are currently requesting that it be excluded,” Airlangga told reporters at his office on Monday (27/7/2026).

When asked whether any commodities other than palm oil would be exempted, Airlangga said he was still awaiting a decision from the United States Trade Representative (USTR).

“Our tariff — this is currently under a Section 301 investigation. So it depends on the decision from there. There are quite a lot of commodities, particularly those based on Indonesia’s natural resources,” Airlangga explained.

However, Airlangga did not specify which commodities would be exempted from the tariff, apart from palm oil.

Previously, the most interesting part of the announcement lies in Annex II Part L. There, the USTR states that the additional 10% tariff does not apply to a series of Indonesian products listed under specific HS codes.

The legal wording reads:

“the duty imposed by heading 9903.05.45 shall not apply to articles the product of Indonesia…” (Annex II Part L)

The list contains hundreds of HS codes. When translated into commodity groups, most are high-value Indonesian export products. These include crude palm oil (CPO), refined palm oil, coconut oil, various vegetable oils and palm kernel meal.

The list also includes seaweed, medicinal plants, essential oils, tropical timber, plywood, rattan and wickerwork. Cork, silk, pearls and precious stones are also covered, along with many others. This means the additional 10% tariff does not automatically apply to a number of commodities that have long been mainstays of Indonesia’s exports to international markets.