TEMPO.CO, Jakarta - Minister of Trade Budi Santoso stated that the government is currently making an offer to have Indonesia granted a zero percent import tariff or duty from the United States (US).
"We are currently in the negotiation process for products that are not produced in America but that we export. We are requesting that it be 0 percent," Budi said to reporters in East Jakarta, Wednesday, July 23, 2025.
Budi cited several commodities that are not produced by the United States. For example, crude palm oil (CPO), cocoa, and coffee.
This statement was made by Budi in response to the plan for the United States to have zero import tariffs on products in Indonesia as a result of the negotiated import tariff framework outlined in the Reciprocal Trade Agreement released by the White House.
He emphasized that not all products from the United States will be subjected to a zero percent import tariff by Indonesia. The United States has indeed agreed to an import tariff rate of 19 percent on Indonesian products, Budi said. However, substantive negotiations on the agreement are still ongoing.
To prevent the potential flood of US products, the government will strengthen the competitiveness of domestic products, including through the issuance of franchise licenses for local brands.
Rather than starting a business from scratch with all its risks, Budi said that franchise licenses provide more certainty as the brand has already developed. "There must be programs, for example, love for domestic products, including licenses and domestic goods," he said.
Thus, the public can secure the domestic market from the influx of foreign products. "In fact, the public already loves domestic products, uses domestic products, so automatically they don't use foreign products," he added.
In addition to maintaining competitiveness domestically, he wants to increase exports to various regions, including Europe, through the Comprehensive Economic Partnership Agreement. "In the future, our market access to the European Union will include many at zero percent, so it will be easy for us to sell there."
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