Govt: Not All U.S. Products Eligible for 0% Tariff, Alcohol and Pork Excluded

TEMPO.CO, Jakarta - The Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, clarified that Indonesia’s zero percent import tariff will not apply to all goods from the United States.

Although the two countries had agreed on a zero tariff policy for most U.S. products—based on a decision by President Prabowo Subianto during trade talks with U.S. President Donald Trump—some sensitive items remain excluded.

Susiwijono explained that out of 11,552 tariff lines in the Harmonized System, 11,474 (or roughly 99 percent of U.S. products) are exempt from import duties. However, several commodities such as alcoholic beverages and pork are excluded due to regulatory and cultural sensitivities.

"So, it’s zero percent for almost everything, except for certain items still under discussion," he said in Jakarta on Friday, July 18, as quoted by Antara.

He added that the zero tariff policy for U.S. imports is not entirely new, as many U.S. goods had already enjoyed this benefit before the recent agreement. About 40 percent of previously imported U.S. products were already tariff-free.

“Our average import tariff is quite low. I recall around 1,482 U.S. tariff lines were already at zero percent,” he said.

Susiwijono noted that global trade is moving toward tariff elimination through free trade agreements and economic partnerships. Indonesia, he said, has actively participated in these agreements, including the ASEAN Trade in Goods Agreement (ATIGA), under which 99 percent of goods from ASEAN countries enter Indonesia duty-free.

A similar policy applies under the Indonesia-Japan Economic Partnership Agreement (IJEPA), allowing most Japanese goods to be imported without tariffs.

In return for Indonesia's tariff concessions, President Trump announced that the U.S. will lower import tariffs on Indonesian goods from 32 percent to 19 percent.

The agreement also includes Indonesia’s pledge to purchase U.S. commodities such as US$15 billion in energy products, US$4.5 billion in agricultural goods, and 50 Boeing aircraft. Trump expressed appreciation for Indonesia's efforts to reduce the U.S. trade deficit and pledged continued cooperation.

Susiwijono remarked that the new U.S. tariff on Indonesian products remains competitive compared to tariffs imposed on other countries. Laos and Myanmar, for instance, face 40 percent tariffs, Cambodia and Thailand 36 percent, Malaysia 25 percent, and Vietnam and the Philippines 20 percent.

“Only Singapore has a lower rate at 10 percent, but the U.S. actually enjoys a trade surplus there. So, Indonesia’s 19 percent rate is still the lowest among countries contributing to the U.S. deficit,” he said.

Melynda Dwi Puspita contributed to the writing of this article.

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