Agricultural Biotechnology Annual
ID2024-0034 – Research and development of agricultural biotechnology in Indonesia continue to progress gradually. Over the past year, around 10 GE crop events have obtained food and feed approval, although only one has received environmental approval for domestic cultivation. To date, more than 50 crop events have received food and feed safety certificates. However, the development of animal biotechnology has not been prioritized. There is still no regulatory framework for GE animals and no GE animal products have been approved for commercialization. Since food security is a top priority of the new Prabowo Subianto administration, Indonesia’s national strategy supporting the increased development of GE products is expected to continue if not ramp up.
Biofuels Annual
ID2024 – 0018 – Indonesia’s fuel grade ethanol consumption remains small and localized in 2024, a year after the restart of the ethanol program. The formation of a taskforce for sugarcane expansion is meant to advance Indonesia’s self-sufficiency goals in sugar and bioethanol. Biodiesel production is projected to rise by 3 percent to 13 billion liters in 2024 on expected higher diesel use combined with the government-mandated 35-percent blending rate. Combined palm oil mill effluent (POME) and palm fatty acid distillate (PFAD) exports remain high on continued demand from overseas markets, lower export levies relative to crude palm oil, and a lack of incentives for local refiners to use biodiesel feedstocks other than crude palm oil.
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.
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.
Food Processing Ingredients Annual
ID2024-0012
Indonesia offers significant opportunities for U.S. ingredient suppliers to meet the demand for raw materials for its food processing industry. The United States is the third largest agricultural supplier to Indonesia, with an 11-percent market share. Soybeans and dairy products made up about half of all U.S. agricultural products shipped to Indonesia in 2023. Other top U.S. agricultural product exports to Indonesia in 2023 included feeds and fodders, cotton, corn, wheat, fresh fruits, and beef and beef products. Halal certification will become mandatory for many foods/ingredients/additives and for all processed food products starting on October 17, 2024.
Cotton and Products Annual
ID2024-0011
The global economic slowdown and illegal imports of cheaper textile products continue to hinder the growth of the Indonesian textile and textile products industry in 2023/24. To assist the struggling sector, the Government of Indonesia (GOI) is implementing new textile import restrictions that also limit the number of certain items in the luggage content of travelers. The enforcement of the regulation is expected to improve spinning mill utilization and increase 2023/24 cotton consumption.
Grain and Feed Annual
ID2024-0010
The Red Sea conflict is not expected to pose significant threats to Indonesian grain imports. Driven by demand from the recent general elections, as well as high local corn prices, imports of wheat for food and feed consumption are estimated to increase for 2023/24. Post-election demand for wheat and rice are forecast to be corrected in 2024/25.
Oilseeds and Products Annual
ID2024-0004
Indonesia palm oil production is forecast to rise marginally to 47 million metric tons (MMT) in 2024/25 on expected recovery from extreme weather in 2023. The mandatory biodiesel program continues to absorb significant domestic palm oil consumption, limiting exportable volumes. Feed industry growth pushed soybean meal use up to 5.8 MMT in 2024/25.
FAIRS Annual Country Report Annual
ID2023-0031
This report provides updated technical information for requirements and regulations on food and agricultural products as currently required by the Government of Indonesia (GOI). Sections that have been updated for this year include Food Additive Regulations; Labeling Requirements; Other Requirements, Regulations, and Registrations Measures; and Import Procedures. The appendices have also been updated and a section on Trade Facilitation has been added.