Indonesia’s zero-tariffs talks with the United States are gaining momentum as Jakarta pushes to secure fairer access for its top export products while the world’s trade order continues to shift. Speaking at the 2025 APEC Summit in Gyeongju, South Korea, President Prabowo Subianto confirmed that negotiations toward zero-percent import tariffs remain “ongoing.” The discussions come as the US seeks to strengthen trade partnerships in Asia following years of friction with China over what Washington calls unfair trading practices.
What Indonesia hopes to achieve from the zero-tariffs talks
Coordinating Minister for Economic Affairs Airlangga Hartarto said the follow-up phase of negotiations will take place soon after the summit. The goal is to secure zero-percent tariffs on key commodities such as palm oil, rubber, and cocoa — products that do not compete with American industries. Acting Director General of Agro-Industry Putu Juli Ardika expressed optimism that Indonesia could “at least be on par with Malaysia,” which recently signed a reciprocal tariff deal reducing US import duties to as low as 0 percent.
Palm oil remains central to the discussion. Malaysia’s agreement with Washington allowed its palm-based exports to enter the US market tariff-free, giving it a competitive edge. For Jakarta, achieving similar treatment is vital to ensuring that Indonesian producers are not left behind.
Why tariffs became a geopolitical issue
The renewed push for zero-tariffs talks also reflects deeper shifts in the global economy. Over the past two decades, successive US administrations have accused China of exploiting trade rules — from restricting market access for foreign firms to forcing technology transfer from US companies operating in China. After China joined the World Trade Organization, critics in Washington said Beijing used its membership to expand state-led industries, manipulate its currency, and tolerate widespread intellectual-property theft.
President Donald Trump’s tariff policies, often criticized abroad, were justified in the US as corrective measures to counter these practices after “decades of diplomatic inaction.” By imposing tariffs on Chinese goods, the Trump administration aimed to re-balance global trade and protect US technology and manufacturing from what it viewed as systemic manipulation.
Opportunities and risks for Indonesia
For Indonesia, the ongoing zero-tariffs talks present both opportunity and risk. On one hand, the global shift away from China-centric supply chains has opened doors for Southeast Asian exporters. Washington’s interest in diversifying sources of critical minerals and agricultural goods gives Jakarta new bargaining leverage. On the other hand, success will depend on whether Indonesia can finalize a comprehensive deal covering not just agricultural exports but also industrial and mineral sectors.
Hartarto confirmed that discussions on critical minerals are being conducted separately. This could pave the way for broader cooperation on battery and EV supply chains — sectors in which Indonesia hopes to become a key global player.
If concluded successfully, the agreement would mark a strategic win for Indonesia: equal footing with Malaysia in the US market, stronger trade resilience, and a larger role in shaping the next phase of the Indo-Pacific economic order.
I agree with your points, fantastic post.