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RI palm oil producers eye African, Middle Eastern markets as US tariffs take effect
Indonesia exported $26.3 billion worth of goods to the US while importing only $9.5 billion, with key exports including electrical equipment, clothing and footwear, CPO and rubber.
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A worker loads fresh oil palm fruit bunches for transportation to crude palm oil factories in Pekanbaru, Riau, on April 27, 2022. (Reuters/Willy Kurniawan)
I
ndonesian crude palm oil (CPO) exports to the United States could face stagnation after US President Donald Trump imposed a 32 percent tariff on goods imported from the country, Indonesian Palm Oil Association (Gapki) chairman Eddy Martono said on Friday.
Eddy suggested the government ease the domestic market obligation (DMO), export approval requirements and export duties to mitigate the impact of the newly imposed tariff on the commodity.
“We must also look for new export markets,” he told The Jakarta Post on Friday, saying businesses could consider targeting markets in Africa, Central Asia and the Middle East.
The US is Indonesia’s largest export destination after China and accounted for slightly more than half of Indonesia’s total US$31 billion trade surplus in 2024.
Indonesia exported $26.3 billion worth of goods to the US while importing only $9.5 billion, with key exports including electrical equipment, clothing and footwear, CPO and rubber.
CPO exports from Indonesia, the world’s largest CPO producer, have steadily increased over the past five years, rising from under 1 million tonnes to over 2 million tonnes last year.
Washington, however, announced additional tariffs on imports from all countries on Wednesday to reduce the US trade deficit with the rest of the world and boost domestic employment.
