KBRN, Jakarta: Indonesia is negotiating with the United States (US) to secure a zero percent import tariff on palm oil, a move aimed at matching Malaysia’s recent trade deal, official said on Wednesday, October 29, 2025, during the opening of the Agro Industry Exhibition at the ministry's headquarter in Jakarta, on Wednesday, October 29, 2025.

“The tariff negotiation process is still ongoing. Hopefully, through further discussions, we can achieve the same treatment as Malaysia,” said Putu Juli Ardika, Acting Director General of Agro Industry at the Industry Ministry, as quoted by antaranews.com.

Malaysia recently reached a reciprocal tariff agreement with the United States, successfully reducing import duties from 25 percent to 19 percent. Under the deal, several of Malaysia’s key exports including palm oil, rubber, wood products, aerospace components, and pharmaceuticals were granted full tariff exemptions, effectively cutting import duties to 0 percent.

Indonesia now hopes to achieve a similar outcome, ensuring its palm oil exports can compete on equal footing with those from Malaysia in the U.S. market. “If we can match Malaysia’s zero percent tariff, we’ll be on a level playing field in exporting to the US,” Putu added.

Earlier, on September 30, Coordinating Minister for Economic Affairs Airlangga Hartarto said the Indonesian government was still negotiating with the administration of US President Donald Trump regarding final import tariff decisions.

He emphasized that Indonesia is pushing for key commodities such as palm oil, rubber, and cocoa to be exempted from the 19 percent import tariff currently imposed by the US. The government would continue talks with the Office of the United States Trade Representative (USTR) to seek clarity and progress in the ongoing negotiations. ***