The Indonesian negotiation team is continuing to push for tariff elimination for commodities that the US does not produce, the ministry’s secretary, Susiwijono Moegiarso, said.
“We are targeting them to be exempt from the reciprocal tariff. We are negotiating to reduce it (the tariff) to zero percent,” he said in Jakarta on Thursday.
According to the official, Indonesian commodities such as cocoa, coffee, palm oil, and critical minerals have high export value.
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He added that the Indonesian government has reached out to the United States Trade Representative (USTR) for further negotiations on commodities that are not produced by the US.
“We have submitted a list of commodities, including cocoa, coffee, palm oil, and all mineral products,” he informed.
President Prabowo Subianto and US President Donald Trump have reached a deal under which Indonesia will pay a 19-percent tariff on every product it exports to the US, while US exports to Indonesia will be exempt from tariff and non-tariff barriers.
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With the tariff lowered from 32 percent to 19 percent, Indonesia now has one of the lowest rates in Southeast Asia. However, the tariff is still higher than Singapore’s 10 percent rate.
Earlier, Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the commodities exempt from import tariffs include copper concentrates and copper cathodes.
This is in line with strategic discussions regarding mineral trade between the two countries.
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Translator: Maria Cicilia, Raka Adji
Editor: M Razi Rahman
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