First US Agricultural Trade Delegation to Timor-Leste Discovers Small but Lucrative Hidden Gem Market
ID2025-0026 – On May 8-9, 2025, FAS Jakarta and U.S. Embassy Dili led the first agricultural trade delegation of U.S. industry groups in Timor-Leste. The delegation met with senior government officials, importers, and private industry to explore opportunities for U.S. commodities. After fruitful B2B discussions, the industry group representatives anticipate a combined export potential of $22.7 million annually in the short term, with U.S. poultry exports projected to reach a record $20 million in 2025. Even higher projections are anticipated once Timor-Leste ascends to ASEAN later this year as it gains more favorable market access to ASEAN’s 10 other member states. Timor-Leste is considering launching food processing and agribusinesses in the area designated for an industrial park near its new deepwater port, which could also provide opportunities for U.S. ingredient exports. In 2024, the United States accounted for around 4 percent of Timor-Leste’s $300 million imports of agricultural and related products.
Indonesia Agricultural Biotechnology Showcase Piques Interest of Indonesian Government Officials
ID2025-0024 – On May 22, 2025, FAS Jakarta organized the Indonesia Agricultural Biotechnology Showcase highlighting to Government of Indonesia (GOI) officials, university students, and other stakeholders Indonesia’s advances in the field of agricultural biotechnology. Indonesia is one of 32 countries in the world cultivating genetically engineered (GE) crops; however, new innovative products face a costly and interrupted approval processes that, if streamlined and made more efficient, can help Indonesia increase its biotechnology research, development, and production potential. Moreover, U.S. soybean and other GE product exports to Indonesia, valued at $1.75 billion in 2024, risk facing increased regulatory burdens without overall GOI support for biotechnology.
Indonesia Raises Palm Exports Levy
ID2025-0022 – On May 14, 2025, Indonesia raised export levies for most palm oil products, from 7.5 percent to 10 percent for crude products and up to 9.5 percent for refined products. The levy increases are meant to sustain the new B40 blend mandate program.
Coffee Annual
ID2025-0021- In 2025/26, Indonesia’s coffee production is expected to grow by 5 percent, reaching 11.3 million bags on improved yields from favorable weather and increased inputs. Exports are forecast to rise by 7 percent to 6.5 million bags, while domestic consumption is predicted to be 4.8 million bags due to weak consumer spending. The United States remains one of the largest importers of Indonesian coffee green beans.
Indonesia Clarifies Prior Notice and Export Timing Requirements with Key Barriers Remaining
ID2025-0020 – Upon request from Post, the Indonesian Quarantine Agency clarified in writing that the export timing and Prior Notice requirements take effect on June 4, 2025, via regulation 14/2024 and provided additional clarifications on the regulation. Notably, the cutoff date refers to the shipment’s departure date as stated on the Bill of Lading. In addition, the Indonesian Quarantine Agency clarified the export timing requirement is different than previously reported, without resolving the fundamental concerns. This report provides additional guidance to help industry prepare for implementation of the regulation while FAS Jakarta seeks an extension and long-term solution. In addition, it provides confirmation of previously provided guidance regarding Prior Notice submissions for genetically engineered products.
Sugar Annual
ID2025-0019 – For marketing year 2025/26, Indonesian sugarcane and plantation white sugar productions are forecast to further increase to 35.0 million metric tons (MMT) and 2.6 million metric tons (MMT) respectively. This is due to harvested area expansion as well as the impact of La Nina, which is predicted to last until April 2025. Due to the expected higher production of domestic plantation white sugar, the Government of Indonesia (GOI) issued no import allocations for plantation white sugar for 2025/26 and slightly reduced the raw sugar import allocation for refineries. In line with population growth and growing demand from the food and beverage industry but hindered by an increased health focus, 2025/26 sugar consumption is forecast to reach to 7.7 MMT of raw sugar equivalent.
Food Processing Ingredients Annual
ID2025-0018 – Indonesia offers significant opportunities for U.S. food ingredient suppliers to supply raw materials for its 100-billion-dollar food processing industry. The United States is the third largest agricultural supplier to Indonesia, with a 10 percent market share. Soybeans and dairy products made up about 52 percent of all U.S. agricultural products shipped to Indonesia in 2024. Halal certification will become mandatory for many foods, ingredients, and additives and for all processed food products starting on October 17, 2026. Ingredients and food products with good sales potential include dairy products, fresh fruit, pork, tree nuts, powdered cheese, dried egg yolk, baking inputs, sugars and sweeteners, textured soy protein, cornstarch, natural honey, odoriferous substances, wine, almonds, juices/concentrates, cherries, peaches, raspberries, blackberries, blueberries, prepared luncheon meats, frozen meals, and frozen bakery items.
Cotton and Products Annual
ID2025-0017 – Following an estimated decrease of Indonesian cotton consumption in 2024/25 of 1.795 million bales, cotton consumption in 2025/26 is forecast to remain on par at 1.8 million bales. The decline is due to low global and domestic demand for Indonesian textiles and textile products, combined with tight competition with cheaper priced products in the local market, a weakening rupiah, and increased labor costs. The lack of a clear and consistent regulatory framework to support the textile industry in weathering the sustained downturn in textile demand will lead to further decline in cotton imports, which are forecast to decrease two percent to 1.8 million bales for 2025/26. The United States is the third largest supplier of cotton to Indonesia and the second largest importer of cotton fabrics from Indonesia.
Grain and Feed Annual
ID2025-0016 – Sustained rainfall due to a subsiding El Nino and a weak La Nina that is predicted to last until April 2025 will likely lead to increased rice and corn production in 2024/25. Food self-sufficiency policies prioritized by Indonesia’s new administration, combined with a weakening Indonesian rupiah, and higher production are expected to severely curtail imports of corn and rice in 2024/25. Although the new President’s flagship Free Nutritious Meals program is slated to be well funded, it is expected to have limited effect on food and feed demand during its first year of implementation as suppliers await more certainty and clarity on procurement regulations before making operational adjustments.
Purr-Plexed in Indonesia on Pet Food
ID2025-0014 – In Indonesia, the pet food market (especially for cats) has seen remarkable growth, increasing 24.5 percent to reach $237 million in 2023. To gain insight into this promising product category amid reduced market share for U.S. pet food, FAS Jakarta partnered with Food Export Midwest/Northeast and a prominent consultant. The attached report includes an in-depth survey and market intelligence related to Indonesian pet food production, supply, distribution, and policy. In addition, while not directly analyzed in this report, FAS Jakarta also sees opportunities for exports of U.S. pet food ingredients, including corn, chicken meal, corn gluten meal, soybean meal, and fish meal to fuel the Indonesian pet food manufacturing industry.