Indonesia is escalating diplomatic pressure on Washington to grant tariff exemptions for its palm oil exports, a move aimed at stabilizing revenue streams as the world’s largest producer faces a sharp contraction in overseas demand.
The push comes as the United States prepares to finalize its trade policy stance, with Indonesian officials seeking to prevent further erosion of market share in a critical destination.
The urgency of the request is underscored by recent trade data showing a significant downturn in export volumes.
According to the Indonesian Palm Oil Association (GAPKI), shipments of palm oil and refined products dropped to 1.996 million metric tons in May, a 25.1% decline compared to the same month last year.
This steep drop highlights the vulnerability of Indonesian exporters to shifting trade barriers and competitive pressures from rival suppliers.
Market participants are watching the diplomatic developments closely, as any resolution—or lack thereof—could influence near-term supply dynamics in the global vegetable oil complex.