Airlangga Proposes Palm Oil Exemption from US 10% Tariff, Other Commodities Await USTR Decision

Coordinating Minister for Economic Affairs Airlangga Hartarto has revealed that the government is seeking to exempt palm oil and several other export commodities from the additional 10% tariff imposed by the United States. According to Airlangga, discussions regarding the exemption are ongoing alongside an investigation process being conducted by the US government through the Section 301 mechanism. He noted that Indonesia is currently included in the group of countries assessed as having met compliance standards regarding forced labour issues. ‘Referring to Section 301 on forced labour, it has been announced that Indonesia is relatively compliant compared to other countries. Initially, we were part of a group of six out of 60 countries, but the latest calculation shows that number has risen to 17,’ Airlangga told reporters at his office on Monday, 27 July 2026. The government is pushing for palm oil to be free from the additional tariff. Airlangga stated that the government continues to communicate with the US to ensure palm oil becomes one of the commodities not subject to the 10% additional tariff. He believes Indonesia’s inclusion on the list of countries deemed compliant with forced labour provisions serves as leverage in the negotiation process. However, the final decision remains with the US government through the United States Trade Representative (USTR). When asked about the possibility of other commodities receiving exemptions besides palm oil, Airlangga could not yet provide certainty. He explained that the list of commodities exempted from the additional tariff still depends on the results of the investigation and the official decision from the USTR. ‘Our tariffs are still under investigation for Section 301. So it depends on their decision,’ he said, adding that the commodities in question are quite numerous, particularly those based on Indonesia’s natural resources. Although he indicated that several other commodities have the potential to receive similar treatment, Airlangga did not detail the list of products. Attention had previously focused on the Annex II Part L document published by the USTR, which stated that the additional 10% tariff does not apply to certain Indonesian products listed under specific Harmonized System (HS) codes.