U.S. Agrees to Ease Tariffs on Indonesian Cocoa, Palm Oil, and Rubber

The United States has tentatively agreed to relieve Indonesian exports of cocoa, palm oil, and rubber from a 19% tariff that has been in place since August 7, as stated by the country's chief tariff negotiator.

While the exemption is agreed upon in principle, a specific timeline for implementation has yet to be determined. Lawrence Hartarto, Indonesia's chief economic minister, noted that the U.S. is engaged in broader tariff discussions with multiple countries. Part of these talks includes a possible U.S. investment in Indonesia's fuel storage capacities, in partnership with sovereign wealth fund Danantara and Pertamina, the state energy company.

Airlangga Hartarto stated, "We are waiting for the U.S.'s response to our proposal," adding that the exemption covers products such as palm oil and cocoa, which are not produced in the U.S. Meanwhile, Indonesia has pledged significant investments in the United States, alongside purchases of American crude and agricultural products, offering zero tariffs on American goods entering its market.

(With inputs from agencies.)