TEMPO.CO, Jakarta - The governments of Indonesia and the United States have agreed to a 0 percent import tariff for the majority of commodities originating from the U.S. This decision was finalized during trade negotiations between President Prabowo Subianto and U.S. President Donald Trump.
As reported by Antara on Friday, July 18, 2025, Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, elaborated that out of 11,552 Harmonized System (HS) tariff lines, approximately 11,474 lines, or around 99% of U.S. products, have been granted tariff exemptions.
Susiwijono clarified that this policy of exempting import tariffs for U.S. products is not entirely new, as most U.S. commodities already enjoyed a 0% tariff prior to this latest agreement with Trump.
"So, almost all products are at zero percent, except for some that we are currently discussing not to be set at zero percent. They have agreed, for example, on alcohol, and also those that are practically impossible to import, but we also requested that the zero percent tariff not apply, namely pork," Susiwijono stated in Jakarta on Friday, July 18, 2025.
In reciprocity for Indonesia's 0% tariff policy, Trump announced a reduction in import tariffs for Indonesian products entering the US market from the previous 32% to 19%. "For the first time ever, our Ranchers, Farmers, and Fishermen will have Complete and Total Access to the Indonesian Market of over 280 million people," Donald Trump posted on Truth Social on Tuesday, July 15, 2025, U.S. time.
In addition to tariff and non-tariff barrier reductions for U.S. products, Prabowo also committed Indonesia to importing energy commodities from the U.S. as part of this trade agreement, with a projected value of up to US$15 billion, equivalent to approximately Rp240 trillion (assuming an exchange rate of Rp16,000 per US dollar). Furthermore, Indonesia will acquire US agricultural products valued at US$4.5 billion, or about Rp72 trillion, and 50 Boeing aircraft, primarily from the Boeing 777 series.
"Thank you to the People of Indonesia for your friendship and commitment to balancing our Trade Deficit. We will keep DELIVERING for the American People, and the People of Indonesia!" Trump remarked.
List of the Top 10 U.S. Export Products to Indonesia Subject to the 0 Percent Tariff
According to the United States Census Bureau, the value of U.S. exports to Indonesia from January to May 2025 amounted to US$4.21 billion (approximately Rp67.4 trillion). Conversely, the value of US imports from Indonesia reached US$13.92 billion (Rp222 trillion) during the same period.
In comparison, throughout 2024, the total value of U.S. exports to Indonesia was US$10.15 billion or around Rp162 trillion, while U.S. imports from Indonesia totaled US$28.05 billion or approximately Rp448 trillion.
Based on United Nations Comtrade data, cited from Trading Economics on Thursday, July 17, 2025, the following were the top 10 non-oil U.S. export commodities to Indonesia in 2024, which are now largely subject to the 0 percent tariff:
Oil seeds, oleaginous fruits, grains, seeds, and fruits: US$1.26 billion or around Rp20.1 trillion.
Machinery, nuclear reactors, and boilers: US$1.11 billion or around Rp17.7 trillion.
Organic chemicals: US$914.96 million or around Rp14.6 trillion.
Residues, waste from the food industry, and animal feed: US$618.06 million or around Rp9.8 trillion.
Aircraft and spacecraft: US$523 million or around Rp8.3 trillion.
Electrical and electronic equipment: US$438.46 million or around Rp7 trillion.
Wood pulp, fibrous cellulose material, and waste: US$400.76 million or around Rp6.4 trillion.
Optical, technical, and medical equipment: US$271.24 million or around Rp4.3 trillion.
Dairy products, eggs, honey, and food products: US$214.76 million or around Rp3.4 trillion.
Plastics: US$204.36 million or around Rp3.2 trillion.
Melynda Dwi Puspita contributed to the writing of this article.
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