Indonesia may secure 18 US tariff exemptions: govt

Jakarta (ANTARA) - The Coordinating Ministry for Economic Affairs announced that the Office of the United States Trade Representative (USTR) plans to grant 18 requests for tariff exclusions submitted by Indonesia under the Section 301 investigation of the US Trade Act.

​This step is expected to provide a significant economic stimulus to the national industrial sector, reduce export costs, and increase the competitiveness of Indonesia's leading commodities in the US domestic market.

​Coordinating Minister for Economic Affairs Airlangga Hartarto, in a statement received in Jakarta on Sunday, expressed his appreciation to USTR Ambassador Jamieson Greer for his inclusive communication and positive response throughout the tariff evaluation process.

​According to the Minister, the strengthening working relationship between the two parties has been a driving force behind the achievement of these important agreements, which are expected to benefit Indonesian businesses.

​Hartarto stated that these tariff exclusions demonstrate international confidence in Indonesia's ongoing efforts to resolve trade bottlenecks.

The USTR has acknowledged the Indonesian government's progressive commitment to enforcing labor laws, particularly regarding the resolution of forced labor issues and the ban on imports of products suspected of being produced through forced labor.

​This acknowledgment was conveyed during the bilateral meeting in Paris.

This assessment places Indonesia in the "Good Group"—one of six priority countries out of 60 eligible for special consideration by the US government, alongside Canada, Ecuador, the European Union, Mexico, and Pakistan.

​Currently, Indonesia and these five other nations are subject to a 10 percent tariff under the Section 301 investigation, while the remaining 54 countries face a 12.5 percent tariff.

​To align with international standards, Indonesia’s Ministry of Trade has issued Ministerial Regulation No. 9 of 2026, which regulates the import ban on products produced by forced labor, following the signing of the Reciprocal Trade Agreement (ART).

​The US government noted that the Section 301 tariff exemptions are expected to take effect after July 24, 2026, or upon the completion of global tariff implementation.

This timeline is designed to prevent overlap with the current 10 percent tariff and to avoid legal uncertainty for businesses while internal US legal proceedings are ongoing.

​Despite this progress, several issues remain of mutual concern.

The US government expressed concerns regarding the restructuring of import trade regulations—specifically the import licensing system—which has impacted the flow of US agricultural products, including apples, grapes, beef, pork, corn, and soybean meal.

The US expects synchronized measures to ensure that domestic policies do not hinder Indonesia's OECD accession process.

​Simultaneously, Indonesia is advocating for market access for copper cathode exports produced by Freeport-McMoRan, seeking exemption from Section 232 tariffs.

In response, Hartarto is coordinating with relevant ministries and sectoral institutions to expedite procedural certainty in these areas.

Translator: Rizka Khaerunnisa, Cindy Frishanti Octavia

Editor: Aditya Eko Sigit Wicaksono

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