Indonesia’s Copper Exports Gain Tariff-Free Access to U.S., Talks Ongoing for Nickel and Palm Oil
Main Takeaways
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JAKARTA, Investortrust.id — Copper shipments from Indonesia are now exempt from import duties in the United States, following a successful trade agreement between the two countries, Minister of Investment and Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani confirmed on Wednesday, Aug. 6, 2025. The new tariff—reduced from 19% to zero—takes effect starting Thursday.
“The U.S. has approved copper for a 0% tariff,” Rosan announced at the Indonesia-Japan Executive Dialogue held at the Fairmont Hotel in Jakarta.
The tariff cut is part of a broader reciprocal trade policy introduced by U.S. President Donald Trump in April 2025. While many Indonesian goods remain subject to a 19% tariff under this policy, products not manufactured in the U.S. are eligible for lower or even zero tariffs.
Nickel and Palm Oil in the Pipeline
Rosan added that Indonesia is now negotiating with the Office of the United States Trade Representative (USTR) for similar tariff exemptions on other key commodities such as nickel and palm oil. “That’s just one product that has been approved. We are still in talks with the USTR to negotiate other items that are not produced domestically in the U.S.,” he said.
The exemption for copper marks a significant breakthrough in Indonesia's efforts to secure better market access for its exports amid heightened trade protectionism globally.
Giffari Ramadhan, Executive Director for Strategy and Economic Policy at the National Economic Council (DEN), previously noted that the U.S. White House joint statement had opened a pathway for trade talks involving goods not naturally produced in the country.
Labor-Intensive Exports Also in Consideration
There are hopes that labor-intensive products, which are crucial for job creation in Indonesia, could also be granted preferential treatment. “There may be room for discussion about whether labor-intensive products could receive similar tariff preferences,” said Giffari, speaking after a discussion at the Indonesian Chamber of Commerce and Industry (Kadin) headquarters on Monday, Aug. 4.
He emphasized the importance of including these products in negotiations, noting their potential to boost employment in Indonesia.
Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, also confirmed that talks with the U.S. are underway. “We’re in the process of sending an official letter and preparing a product list,” he told reporters. “We’ll submit it once finalized—more or less it includes the usual goods.”
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