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Official: Indonesia is still negotiating the details and exemptions of the U.S. Tariff Deal.

An official revealed on Friday that Indonesia was still in the process of negotiating details of the recent trade agreement it reached with the United States, after the latter reduced tariff rates for the Southeast Asian nation. It is also seeking exemptions on its palm oil and nickel exports.

Two countries have reached a deal on trade that has led to the reduction of proposed tariffs from 32% to 19%. This was the only deal that the Trump administration had reached before the deadline of August 1.

Susiwijono Megiarso is a senior official in the economic ministry of Indonesia. She told reporters that both countries are still working out the finer details of their agreement. The 19% rate would be added to existing tariffs.

He said that Indonesia had asked the United States not to levy the tax on its cocoa, nickel, crude palm oil, and rubber exports. U.S. tech products would also be exempted under Indonesia's rules for "local content", which requires companies to use local components when manufacturing.

Indonesia is the largest palm oil producer in the world and is also the United States' biggest supplier, with 85% of the total imports to be made by 2024.

Susiwijono stated, "This is an excellent opportunity. It will be a positive factor for us." The deal should support our exports.

Susiwijono stated that Indonesia will also purchase jets from Boeing for its flag carrier Garuda Indonesia, and Pertamina, its state-owned energy company, will import energy from the United States subject to a business review.

He said that all U.S. products imported into Indonesia would be subject to zero tariffs with the exception of pork and alcoholic beverages. Some U.S. products will also be exempt from import quotas. (Reporting and writing by Stefanno Sulaiman, Stanley Widianto, Editing by David Stanway).

(source: Reuters)