Trade Minister Assures Indonesian Cocoa and Other Products Will Remain Tariff-Free Under Trump
The Minister of Trade, Budi Santoso, stated that Indonesia will continue to receive zero percent import tariffs, or be exempt from tariffs, for 1,819 products following the US Supreme Court’s revocation of reciprocal tariffs. These products include palm oil, coffee, cocoa, spices, rubber, and electronic components.
Budi stated that the agreement between Indonesia and the US, which has been signed, including the zero percent tariff facility, is still expected to continue.
“Yes, there is currently a consultation period due to the recent decision in the United States, but the agreement we have signed, which grants zero tariffs for products entering the United States, is still what we hope will continue,” said Budi at his office in Central Jakarta, Thursday (February 26, 2025).
In the Agreement on Reciprocal Trade (ART) document, Indonesia and the US have agreed on 1,819 tariff lines for Indonesian products to be imported into the US duty-free. This facility applies to a number of agricultural and industrial products, such as palm oil, coffee and cocoa, spices, electronics, semiconductors, and aircraft components.
As is known, the US is preparing for a new wave of tariffs based on national security. This step is to circumvent the Supreme Court’s decision which revoked the reciprocal tariffs initiated by President Donald Trump.
Senior Expert at the Government Communication Agency of the Republic of Indonesia (Bakom RI), Fithra Faisal Hastiadi, explained that the US Supreme Court’s decision creates uncertainty for the fate of trade agreements that have been signed.
Fithra explained that the ART refers to the International Emergency Economy Power Act of 1977. The reciprocal tariffs under this regulation have been revoked by the US Supreme Court, which automatically means that the trade agreement can be considered no longer valid.
According to him, there are several legal opinions stating that this trade agreement can still be valid because it has been signed internationally. Moreover, the trade agreement must first be ratified by the parliaments of each country.
“However, in article number 7, in the agreement on reciprocal tariffs, it is clearly stated that each party must wait for the ratification process. The ratification process means that it returns to domestic dynamics. This means that in Indonesia, it must be discussed with the DPR (House of Representatives), in the United States, it must be discussed with Congress, and so on,” said Fithra in a discussion at the Bakom Office, Central Jakarta, Wednesday (February 25, 2026).