Indonesia is actively seeking assurance from the United States regarding the continuation of previously agreed tariff exemptions on crucial exports. This comes in the wake of a new 10% U.S. tariff introduced due to concerns over forced labor enforcement. Currently, Indonesia is among the nations subject to this reduced levy. Indonesian authorities remain in ongoing discussions with U.S. trade officials, expressing hope that the existing trade deals will maintain their duty-free status for key exports such as crude palm oil, cocoa, coffee, and natural rubber.
As part of the evolving trade dynamics, Indonesia is also awaiting the results of a separate U.S. investigation into structural excess capacity. This inquiry could potentially lead to further trade measures. The Indonesian government has pledged to continue negotiations to secure favorable tariff rates and safeguard its export interests.
The recent U.S. policy changes also bring some benefits for Indonesia, particularly in the textile sector. There is preferential treatment for specific Indonesian textile products that incorporate U.S. cotton and other American materials, which may provide a competitive edge in this industry.
In terms of trade figures, Indonesia reported a significant increase in bilateral trade with the United States, reaching $18.4 billion in the first five months of 2026. During this period, Indonesia enjoyed a trade surplus of approximately $7 billion, highlighting the robust trade relationship between the two countries.