ID2026-0033 - In early March 2026, Indonesia unveiled a new biofuel roadmap that phases in a 5 percent bioethanol blend (E5) for non-public service obligation (PSO) or non-subsidized gasoline, beginning with a geographic rollout across Java Island in 2026 to 2027 and expanding nationwide to a 10 percent blend (E10) by 2028. Rising global energy prices led the Government of Indonesia (GOI) to tighten controls on subsidized-fuel consumption while keeping retail prices for higher octane (RON 90) gasoline and subsidized diesel unchanged. This approach shielded consumers' purchasing power from the impact of global price increases. Against this backdrop, the GOI accelerated its biodiesel blending mandate raising it from a 40 percent biodiesel blend (B40) to a 50 percent biodiesel blend (B50) in July 2026, ahead of the new roadmap's original timeline and revising the fuel allocation upward.

ID2026-0030 - Indonesia's transition to the B50 biodiesel mandate, which took effect in July 2026, is projected to raise domestic palm oil consumption by 11 percent to 25.3 million metric tons (MMT), reducing exportable supplies to 23.1 MMT in 2026/27. The May 2026 rollout of Indonesia's soybean meal (SBM) import licensing system spurred opportunistic buying, prompting animal feed producers to accelerate imports during the transition period. However, delays in issuing import permits to private traders led to SBM stock shortages among smallholder poultry farmers.

ID2026-0029 - Predicted early arrival of the 2026 dry season with potential of moderate El Niño towards the end of 2026 and early 2027 will lead to a forecast decrease in paddy and corn harvested areas in 2025/26 and 2026/27. A reduced corn import quota for industry in 2025/26 is forcing corn wet millers to find alternative raw materials to continue production. Imports of wheat in 2026/27 are forecast to increase to meet higher demand from growing feed and poultry industries and growing consumer demand for wheat-based foods, with an expected increased market share for U.S. wheat.

ID2026-0026 - On June 9, 2026, Indonesia's National Agency of Drug and Food Control (BPOM) finalized Regulation No. 10/2026, updating front-of-package nutrition labeling requirements for packaged processed foods and beverages — introducing revised Nutrition Information (ING) requirements, a voluntary "Healthier Choice" logo, and mandatory Nutri-Level front-of-pack labeling for specified beverage categories based on sugar, sodium, and total fat content. The regulation applies equally to imported and domestically produced products, imposes no sales or distribution restrictions, and carries significant implications for U.S. exporters given approximately $355 million in U.S. processed food exports to Indonesia in 2025, with full compliance required by June 17, 2028. Notably, Indonesia's WTO notification (G/TBT/N/IDN/56/Add.2), circulated June 15, 2026, purported to open a 60-day comment period on the draft regulation despite the final regulation having been promulgated just two days later.

ID2026-0025 - Indonesia, Southeast Asia’s largest economy and fourth most populous country, offers significant opportunities for U.S. agricultural exporters, supported by a population of 284 million, 5.1 percent economic growth, and strong demand for imported food products. Indonesia imported $26 billion in agricultural products in 2025, including $9.2 billion in consumer-oriented products, while the United States remained the fourth-largest agricultural supplier. Growth in modern retail, foodservice, e-commerce, specialty coffee and tea chains, bakery cafés, and the government’s Free Nutritious Meals Program is driving demand for dairy products, beef, fresh fruit, frozen potatoes, snack foods, and other value-added food products. Despite challenges related to import licensing, halal certification requirements, and competition from free trade agreement partners, Indonesia remains one of the most promising markets in Southeast Asia for U.S. consumer-oriented and food ingredient exports.

ID2026-0024 - Following President Prabowo’s announcement that Indonesia will centralize its palm oil and select other non-agricultural exports through a newly appointed state-owned enterprise, the Government of Indonesia issued Ministry of Trade Regulation 16/2026 in early June 2026. This regulation lists palm oil products that may only be exported by a designated state-owned enterprise beginning in January 2027. The United States ranked as the fifth-largest destination for Indonesian palm oil exports, receiving 1.3 million metric tons (MMT) in calendar year (CY) 2025.

ID2026-0022 - Effective May 8, 2026, the Ministry of Agriculture changed its import licensing scheme for 57 plant-based feed ingredients, including soybean meal and corn-derivative products via Ministry of Agriculture Regulation 11/2026. This regulation establishes two separate pathways for the Ministry’s import licensing-related approvals: one for soybean meal and wheat for feed and the other for 55 other feed ingredients. These changes threaten U.S. agricultural exports by using import licensing to enforce strict import timelines, control import volumes, designate import channels, and prohibit corn and broken rice imports for feed. The regulation aligns with Ministry of Trade Regulation 11/2026, which requires the Ministry of Trade to also issue import licenses for six commodities, including soybean meal and wheat for feed.

ID2026-0023 - On May 6, 2026, Indonesia clarified which products must be certified halal via notifying the Halal Product Assurance Agency Decree No. 307/2025 to the World Trade Organization. The decree generally exempts fresh, unprocessed fruit and beverage products from halal certification while requiring that processed products be certified halal. Animal products (e.g., meat and dairy) have required halal certification since 1989, but the decree confirms that processed products must be certified halal and introduces new certification requirements for seafood, dried fruit, and products containing beeswax. While the Decree was enacted on November 20, 2025, it will not be enforced until an unknown date. While FAS continues to seek flexibilities, we recommend that U.S. industry representatives review the attached list of products requiring halal certification to inform planned shipments to Indonesia.

ID2026-0021 - Indonesia’s green bean production will likely decrease 8 percent to 11.38 million bags in 2026/27 due excessive rainfall during the flowering and fruit development phase in Robusta production areas in Southern Sumatera and other areas in Java Island. Post revised Arabica production down in 2025/26 related to floods that hit Arabica production regions in Aceh and North Sumatera. Post projects Indonesian green bean exports at 7 million bags for 2026/27.

ID2026-0015 - Indonesian cotton production in 2026/27 is forecast to remain insignificant. Despite minimal trade barriers, cotton imports are expected to decline in both 2025/26 and 2026/27. The primary driver is reduced demand from Indonesia's textile and textile products industry, which continues to struggle with various impediments to growth. These challenges outweigh the favorable trade conditions for cotton imports.