Indonesian Political, Business & Finance News

Indonesia poised to secure 18 tariff exclusions from the US

| Source: ANTARA_ID Translated from Indonesian | Trade
Indonesia poised to secure 18 tariff exclusions from the US
Image: ANTARA_ID

Jakarta (ANTARA) - The Coordinating Ministry for Economic Affairs has stated that the Office of the United States Trade Representative (USTR) plans to approve 18 product tariff exclusion requests submitted by Indonesia under the investigation of Section 301 of the US Trade Act. This move is believed to provide a significant economic stimulus for the national industrial sector, reduce export cost burdens, and increase the competitiveness of Indonesia’s flagship commodities in the US domestic market.

Coordinating Minister for Economic Affairs Airlangga Hartarto, in a statement received in Jakarta on Sunday, expressed appreciation to USTR Lead Ambassador Jamieson Greer for the inclusive communication and positive response throughout the tariff evaluation process. He noted that the improving working relationship between the two parties serves as a driver for reaching important agreements expected to benefit the Indonesian business community.

Minister Airlangga also stated that the facilitation of these tariff exclusions is tangible evidence of international confidence in Indonesia’s debottlenecking efforts. The US government, through the USTR, has provided positive recognition of the Indonesian Government’s progressive commitment to labour law enforcement, particularly regarding the resolution of forced labour issues and the prohibition of imports of products linked to forced labour.

This was disclosed during a bilateral meeting on the sidelines of the 2026 OECD Ministerial Meeting in Paris, France. This positive response places Indonesia within a ‘Good Group’ of six priority nations out of 60 countries eligible for special consideration from the US Government, alongside Canada, Ecuador, the European Union, Mexico, and Pakistan. Indonesia has been assigned a 10 per cent tariff based on the results of the Section 301 investigation, while 54 other countries will face a 12.5 per cent tariff.

Furthermore, through the Ministry of Trade, Indonesia has issued Minister of Trade Regulation Number 9 of 2026, which regulates the prohibition of imports of products produced via forced labour, following the agreement of the Agreement of Reciprocal Trade (ART).

The US Government also expressed concerns regarding the timeline for implementing the Section 301 tariff exclusions, which are expected to take effect only after 24 July 2026, following the completion of global tariff applications. This scheduling is intended to avoid overlapping with the current 10 per cent interim tariff and to anticipate ongoing internal legal processes in the US to prevent legal uncertainty for businesses. Additionally, several unresolved issues remain a shared concern. The US Government highlighted concerns regarding the restructuring of import trade through the licensing system in Indonesia, which impacts the flow of US agricultural products such as apples, grapes, beef, pork, corn, and soybean meal. The US expects synchronisation measures to ensure domestic policies do not hinder Indonesia’s accession to the OECD.

Simultaneously, Indonesia is also fighting for market access for copper cathode exports produced by Freeport-McMoRan in Indonesia to be excluded from Section 232 tariffs. Responding to these strategic notes, Minister Airlangga is coordinating with relevant sectoral ministries and agencies to accelerate procedural certainty on the ground.

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