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.

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.

ASEAN Collaborates with USDA to Hold Agricultural Biotechnology Workshop

ID2024-0006
From March 4-6, 2024, 26 representatives from all ten member states of the Association of Southeast Asian Nations (ASEAN) and Timor-Leste participated in a USDA-funded agricultural biotechnology workshop – along with dozens of private sector stakeholders at the ASEAN Secretariat in Jakarta, Indonesia. Representatives from each member state presented on regulations and research updates in their countries, and engaged in substantive conversations on balancing the need to assure the food safety of genetically engineered products with the need to innovate and meet increasing food security challenges. Day 2 of the workshop consisted of a field trip to an Indonesian potato farm growing GE blight resistant potatoes and the University of Padjadjaran which is developing GE catfish.

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.

Oilseeds and Products Update

ID2024-0003
Post revised down Indonesia palm oil exports estimate to 27.9 million metric ton (MMT) on lower supplies, higher domestic use and expected reduced export demand for 2023/24. Palm oil use for the biodiesel industry is revised down to 12.3 MMT for 2023/24 on lower-than-expected biodiesel distribution in 2023. Soybean meal use is estimated to increase 2 percent to 5.65 MMT in 2023/24 from the previous year on improved feed millers’ performance.

Cotton and Products Update

ID2023-0035
Indonesian cotton imports in 2023/24 are forecast to marginally increase by 5.9 percent to 1.8 million bales compared to 1.7 million bales in 2022/23 assuming spinners will use more inventory on hand before making new purchases. Global demand slowdowns and tight competition from cheap, illegally imported clothing in the domestic market led to lower cotton utilization which will increase 2023/24 ending stocks to 379,000 bales.

Dairy and Products Annual 

ID2023-0033
Although Indonesian dairy production is still reeling from the 2022 Foot and Mouth Disease (FMD) outbreak, imports of dairy ingredients are expected to decline in 2023. Dairy importers are reporting a 10 to 20 percent drop in demand in 2023 due to a multitude of factors, including problems obtaining import recommendations and licenses, decreased consumer purchasing power, and election uncertainty. Post estimates Indonesia’s total dairy consumption in 2022 and 2023 at 4.22 and 3.7 MMT respectively. Dairy consumption in 2024 is anticipated to rebound to 4 million metric tons as post-election economic conditions are expected to stabilize.