Lang
Indonesia's ambassador to the United States, Duiswuryo Indrawyono Susilo, has revealed that a delegation from the Southeast Asian nation is proposing to export palm oil as part of efforts to secure a further cut in the reciprocal tariff currently imposed by the United States at 19%.
According to Indonesia's state news agency Antara, Susilo said on 11 September that during the second week of this month, the delegation would propose a tariff reduction by offering several key commodities not produced in the United States, with palm oil at the top of the list.
"At the moment, Indonesia will propose lowering tariffs on goods that the United States does not produce. For example, the United States needs large volumes of palm oil, so we hope that if we export it, the tariff won't stay at 19% but will be cut further," he told Antara.
Other commodities Indonesia intends to propose include shrimp, which already accounts for exports worth close to US$2 billion, as well as timber, furniture, copper and nickel. The ambassador also highlighted opportunities to boost exports in the apparel and textile sectors, noting that the United States represents a huge market for these products.
Susilo also noted that Indonesia's exports to the United States reached US$26 billion in 2024, compared with US$10 billion worth of US exports to Indonesia, resulting in a substantial trade surplus of US$16 billion in Indonesia's favour.
"The United States wants to achieve greater balance, but Indonesia also aspires to grow. Both sides must find ways to achieve this together," he said.
The current 19% reciprocal tariff already marks a reduction from the original rate of 32%, achieved following direct contacts between Indonesian President Prabowo Subianto and US President Donald Trump. Indonesia continues its negotiations with the aim of reaching a "zero tariff" agreement for certain products, amid US openness to dialogue.