Indonesia seeks US tariff exemption for palm oil exports

Photo caption: Coordinating Minister for Economic Affairs Airlangga Hartarto speaks to reporters at his office in Jakarta on Monday (July 27, 2026).

Jakarta (ANTARA) - Indonesia is stepping up diplomatic efforts to persuade Washington to grant tariff exemptions for its palm oil exports as the United States prepares to finalize broader trade measures following investigations into labor practices and industrial capacity.

Speaking at his office in Jakarta on Monday (July 27), Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that the government has formally requested an exemption from additional US import tariffs.

"We are requesting that palm oil be exempted," Airlangga said, adding that Jakarta is awaiting a phased review by US trade authorities.

The push comes after the Office of the United States Trade Representative (USTR) imposed a 10 percent tariff on selected Indonesian goods following a Section 301 investigation into forced labor in global supply chains.

According to Airlangga, Indonesia is among 17 countries and territories—including India, Malaysia, Mexico, and the United Kingdom—that are subject to the 10 percent tariff rate.

Countries deemed less compliant with anti-forced labor standards face higher tariffs of 12.5 percent.

Airlangga emphasized that US findings showed Indonesia was "relatively compliant" compared with many of the 60 countries evaluated.

While the forced labor inquiry has progressed, a separate USTR investigation into industrial excess capacity remains unresolved.

"The excess capacity issue is still being investigated, and we have answered all various questions related to it," Airlangga said.

Indonesian officials said they have submitted complete responses to Washington’s inquiries and are awaiting a decision.

Spokesperson for the Coordinating Ministry for Economic Affairs Haryo Limanseto said the US government is expected to announce the outcome of the excess capacity investigation soon.

Indonesia remains hopeful that the final determination will result in favorable trade terms for Southeast Asia’s largest economy, particularly for its key agricultural export.