3rd Halal20 International Conference
The conference took place on October 9 -12, 2024 at the ICE BSD, Tangerang, Banten, Indonesia.
This event was organized by the Halal Product Assurance Organizing Body (BPJPH) of the Ministry of Religious Affairs. This global halal forum produced important outputs, including the signing of 52 Mutual Recognition Agreements (MRAs) between BPJPH and Foreign Halal Certification Bodies from 24 countries, and also the Communiqué on Strengthening the Global Halal Ecosystem from all delegates present.
Guidance on Prior Notice Requirements for All US Commodity Shipments to Indonesia Beginning October 6
ID2024-0028 – This report serves as a follow up to FAS Jakarta’s August 14 and October 3, 2024 reports on Indonesia’s expanded “prior notice” requirements. Exporters must submit a prior notice notification in the Indonesia Quarantine Authority’s (IQA) new online system, on a per shipment basis, for all U.S. commodity shipments departing on or after October 6, 2024. The User Manual, provided in English by IQA, is provided within the report. FAS Jakarta has added questions and answers based on our assessment of information gathered from IQA to help U.S. exporters comply with the prior notice requirement. Please note that this guidance is based on information gathered informally and may be subject to change.
Indonesia Expanded Prior Notice Requirement Effective October 6, 2024
ID2024-0027 – On August 14, 2024, FAS Jakarta published a report summarizing an Indonesian Quarantine Agency notification to the WTO which stated that exporters must submit “prior notice” before shipping all agricultural commodities. The requirement to provide “prior notice” of shipments was previously limited to plant products (e.g. fresh horticultural products and grains) but the notification indicated this requirement would be extended to all agricultural products (e.g. meat, dairy, fishery products, and seeds). The U.S. Government submitted detailed comments regarding its concerns about this measure. IQA confirmed on September 30, 2024 that this requirement will come into effect on October 6, 2024. Post is actively working to ascertain more details on the implementation of this measure and provide feedback to IQA.
Retail Foods Annual
ID2024-0026 – Indonesia’s growing youth population, middle class, and urbanization offer promising opportunities for U.S. exporters. The retail sector had sales totaling $103 billion in 2023 with increased demand from convenience stores and traditional stores. Traditional markets still dominate the retail food and beverage sector, accounting for 76 percent of market share, although they continue to lose market share to modern retail stores and e-commerce. Among modern retail channels, convenience stores make up the largest segment and are expected to continue to grow in terms of the number of outlets due to their closer proximity to residential areas and expansion outside of Java Island.
Indonesia Simplifies Palm Oil Export Levies in Response to Decreasing CPO Exports
ID2024-0025 – Indonesia introduced a new, simplified set of export levies for palm oil products, effective September 21, 2024, amidst decreasing crude palm oil (CPO) exports due to competition from other edible oils. Most of the new levies for palm oil exports will be reduced to between 3 percent to 7.5 percent of the reference price which the Government of Indonesia sets monthly. Under the new set of levies, the export levy for waste product palm oil mill effluent (POME) is expected to increase to be on par with the levy for CPO. In addition, the export levy for used cooking oil (UCO) would also increase.
Indonesian Quarantine Agency Notifies WTO on Requirements to Submit Prior Notice for the Export of All Agricultural Commodities
ID2024-0023 – On July 4, 2024, the Indonesian Quarantine Agency (IQA) notified the World Trade Organization (WTO) of their plans to issue a new regulation regarding Quarantine Documents and Seals under notification number G/SPS/N/IDN/149. The draft regulation has notable provisions which require that prior to a shipment’s departure from the port of embarkation, exporters of all agricultural commodities are required to submit “prior notice,” a document that includes requirements such as a Certificate of Analysis (COA) and information regarding a product’s GMO status, for every shipment. The IQA is accepting comments until September 2, 2024, and plans to provide further information in a public dissemination session close to the comment period deadline sometime in late August.
Oilseeds and Products Update
ID 2024 – 0022 – Indonesia palm oil exports are estimated to decline to 26.5 million metric tons (MMT) in 2023/24 on lower output and weaker demand from key destination markets. Post revised down 2023/24 palm oil production to 45.6 MMT as 2023’s El Nino led to much lower yields than previously anticipated. Indonesia 2023/24 soybean production is also revised down to 360,000 metric tons on reduced government assistance for soybean production. Post revises 2023/24 soybean meal imports down to 5.65 MMT on weak demand from the poultry feed industry.
Grain and Feed Update
ID2024-0021 – Driven mainly by higher demand from feed mills, higher consumption of flour-based food during the consecutive religious festivities and general election, as well as demand for alternative staples cheaper than rice and trending flour-based foods, Indonesian wheat imports in 2023/24 are estimated to break record levels at 12.6 million metric tons (MMT). Meanwhile, 2023/24 corn consumption for feed is revised down 8.5 percent to 8.6 MMT. Assuming recovering local corn production and lower corn prices, 2024/25 wheat imports are forecast to slow to 12.0 MMT while corn for feed consumption will increase to 9.0 MMT.
Coffee Annual
ID2024-0016
Indonesia’s 2024/25 coffee production is expected to recover to 10.9 million (60-kilogram) bags on favorable weather despite a delayed harvest in Southern Sumatera. Exports for 2023/24 are revised downward as production falls more steeply than previously estimated. Domestic consumption is expected at 4.8 million bags on projected stable economic growth.
Sugar Annual
ID2024-0015
Despite area expansion by private sugar mills, a long, drawn-out El Nino in 2023/24 reduced both sugarcane and plantation white sugar production. The ongoing impact of El Nino will be immediately followed by the onset of the 2024 dry season combined with a predicted La Nina at the end of 2024, which are forecast to further reduce sugarcane and plantation white sugar production. However, high international sugar prices in 2023/24 have reduced imports realization. Considering the increased demand for sugar from the recent general elections and consecutive religious festivities in early 2024, the Government of Indonesia (GOI) increased authorized import allocations for 2024/25.
