US-Indonesia Trade Deal at 19% Tariff — Palm Oil, Critical Minerals Deal Holds

Indonesia's February 20 trade deal with the US — reducing the threatened 32% tariff to 19% — remains in force as of late May 2026. Under the agreement, Indonesia committed to eliminate tariffs on over 99% of US goods, purchase more US energy, agricultural products (soybeans, wheat), and Boeing aircraft, and grant US access to critical minerals (nickel, cobalt, bauxite). Palm oil and textiles received 0% US tariff treatment. Indonesia's palm oil sector reported record exports of US$40 billion in 2025, up 11%, contributing 3.5% to GDP. In January–February 2026, CPO export value reached US$4.69 billion, a 26.4% year-on-year surge. However, US tariffs on Indonesian solar panels exceeding 100% — imposed days after the trade deal — remain a point of contention, and the overall tariff environment continues to depress investor confidence in the export sector.