Indonesia to seek exemption of palm oil, coffee and rubber from US duties

The Donald Trump administration is proposing a new 10% tariff on goods from Indonesia following an investigation into Jakarta’s practices regarding imports using forced labor.

This new import tax is likely to take effect after the current 10% global tariff expires on July 24. Airlangga Hartarto, the country’s top economic affairs minister, who oversaw trade agreements, announced that Jakarta would seek tariff exemptions on its plantation products and exempt Indonesian palm oil from US import restrictions.

“Crude palm oil, rubber, coffee, and much more,” Airlangga said Tuesday evening in Jakarta, responding to a question about the list of goods exempt from tariffs.

The forced labor investigation is not the only Section 301 investigation currently underway against Indonesia. Another investigation concerns overcapacity in the manufacturing industry. The US is likely to announce tariffs on excess capacity in the coming weeks.

Airlanga’s aide, Susiwidjono Moegyarso, told the publication that both Section 301 investigations could raise the final tariff rate on Indonesian products to 18%. Indonesian textiles will also likely receive a “special settlement mechanism” when imported into the US, the department noted, hinting at tariff reductions.

Indonesia accounts for approximately 89% of palm oil supplies to the US, with neighboring Malaysia supplying the remaining small volumes.

Indonesian palm oil group Gapki reported that its annual shipments to the US will reach 2 million tonnes. Official statistics showed that Indonesia’s total exports to the US in 2025 approached $31 billion, reaching nearly $10.2 billion from January to April 2026.

Tags: Indonesia, palm oil, USA