Biotechnology and Other New Production Technologies Annual

ID2025-0038 – Since food security is a top priority of the President Prabowo administration, Indonesia’s national strategy supports increased research and development of agricultural biotechnology products and has taken steps to approve agricultural biotechnology events. Notably, the Government of Indonesia has accepted the food safety of golden rice, but cultivation is still pending approval for feed safety and environmental safety, as well as variety release. In addition, authorities have taken a favorable approach to regulating gene editing and approving stacked trait events, which will help facilitate the development and import of related products. Unfortunately, the Government of Indonesia has not prioritized the development of animal biotechnology. There is still no regulatory framework for genetically engineered animals and no genetically engineered animal products have been approved for commercialization.

Dairy and Products Annual

ID2025-0044 – Published on November 21, 2025 Indonesia’s milk production increased to 722,883 metric tons in 2025, with record production projected for 2026, due to partial recovery from the 2023 Foot and Mouth Disease outbreak combined with significant cattle imports and improved management in modern dairy farms. This growth creates opportunities for U.S. live cattle, […]

Retail Foods Annual 

ID2025-0036 – Published on November 21, 2025 Indonesia’s grocery retail sector reached $101 billion in 2024, though it contracted slightly due to slowing consumer purchasing power and high operating costs. Traditional retailers, which still account for about 73 percent of the market, continued to decline, while supermarkets and hypermarkets also struggled amid store closures. Convenience […]

Indonesia’s Expanding Halal Standards with Trade Impacts on the Horizon

ID2025-0035 – Published on August 27, 2025 On October 17, 2026, mandatory halal certification requirements are scheduled to expand to most food and beverage products. In addition, genetically engineered products would also need to be certified halal by this date, although Indonesian officials have informally signaled flexibility. (Note that meat and dairy products must already […]

Biofuels Annual

ID2025-0029 – Indonesia’s aggressive biodiesel blending mandate rising from 35 percent to 40 percent in early 2025 has resulted in no exports due to limited production capacity. Expansion to B50 will require both significant subsidies and additional production capacity. The bioethanol market is projected for small growth in 2025, with E5 sales expected to remain limited in 2025 as the majority of the gasoline market is captured by subsidized fuel. In May and June 2025, the Government of Indonesia issued two conflicting regulations on biofuels, with one appearing to block biofuel imports while the other simplifies import processes. It remains unclear how these regulatory changes relate to the bilateral trade deal announced on July 22, 2025.

Oilseeds and Products Update

ID2025-0031 – Indonesia’s palm oil export estimate is revised down from the previous estimate to 22.8 MMT in 2024/25 due to the B40 mandate and reduced export demand. Soybean consumption is expected to remain flat at 2.8 MMT in 2024/25 amid weak consumer purchasing power. Lower prices encouraged imports of soybeans and soybean meal, but depreciation of the Indonesian Rupiah and weak demand slowed this trend.

Grain and Feed Update

ID2025-0030 – For 2025/26, Indonesian paddy and corn production are forecast to return to normal trends following significant increases due to weather anomalies in 2024/25. The ample supply of corn in 2024/25 has driven feed mills to use more corn in feed formulations, reducing wheat for feed consumption and ending stocks. On trade, the trade deal between the United States and Indonesia announced on July 22, 2025 is expected to increase the market share of U.S. corn and wheat supplied to Indonesia in 2025/26.

Drivers and Trends of US Agricultural Trade with Indonesia Opportunities and Challenges

ID2025-0028 – Following a lengthy period with a trade surplus, the U.S. trade balance with Indonesia in agricultural products began to reverse in 2021. Largely driven by increased palm oil exports, the highest trade deficit was recorded in 2022 at $1.8 billion. If the product scope is expanded to agricultural related products, including seafood and wood products, the deficit is even higher, valued at $3.7 billion in 2024. Overall, several factors substantially contributed to the U.S. agriculture trade deficit. These include increased competition (e.g., via tariff preferences and lower prices), non-tariff barriers (e.g., import licensing), and high U.S. demand for select Indonesian products. However, significant opportunities remain in this promising, albeit challenging, market, especially if the tariff and non-tariff barriers can be addressed.

Exporter Guide Annual

ID2025-0027 – Indonesia, Southeast Asia’s largest economy with a population of 282 million, presents significant opportunities for U.S. exporters despite regulatory challenges, declining middle-class purchasing power, and tariff preferences granted to our major competitors. In 2024, the United States exported $3 billion of agricultural products to Indonesia with major products including soybeans, livestock feed ingredients, dairy products, wheat, cotton, beef, and fresh fruit. Tariff and non-tariff barriers remain, such as import licensing and facility registration requirements. In addition, halal certification requirements will apply to most agricultural products by October 2026. However, Indonesia’s tropical climate and rising demand for food products support continued growth in high-value agricultural imports. To succeed in this challenging but lucrative market, U.S. exporters should work closely with local importers, participate in major trade shows, and understand Indonesia’s relationship-focused business culture.