ID2024-0048 - Indonesia’s B40 biodiesel blending mandate program, which is expected to roll out in 2025, is projected to increase palm oil use by 3 percent to 22 million metric tons in 2024/25. Soybean consumption recovered in 2023/24 as soybean retail prices continue to decrease. Weak performance in the feed mill industry reduced 2023/24 soybean meal use lower than previously expected. Due to lower prices, Indonesia’s imports of U.S. soybean meal rose an estimated 43 percent to 167,000 MT in 2023/24.

ID2024-0043 - Indonesia’s National Agency of Drug and Food Control (BPOM) has drafted a new regulation that would mandate the use of a “Nutri-Level” front-of-pack labeling system for sugar, salt, and fat (SSF) content and set maximum SSF levels. Like the system used in Singapore, the proposed grading system would rank products as “A, B, C, and D’’ levels. C and D-level products would be required to display their “Nutri-Level” grade as well as their total SSF content per serving or per package. The first phase would apply to ready-to-drink, non-alcoholic beverages, potentially as early as December 2024. Once in force and fully implemented, this regulation would have a significant effect on U.S. packaged food and non-alcoholic beverage exports to Indonesia - currently valued at approximately $54 million per year. U.S. stakeholders are requested to share comments and concerns with FAS as soon as possible. Please note that the final regulation may be published prior to the January 2, 2025, comment deadline.

ID2024-0043 - Overall, Indonesia’s total 2024/25 coffee production rose by approximately 2.4 million bags from the previous year. However, post revised down this 2024/25 production estimate 8 percent from the previous report’s estimate to 10 million bags as robusta crop recovery from severe weather impacts in 2023/24 underperformed expectations. Green bean exports for 2024/25 are also revised down from the previous report 13 percent to 5.2 million on lower-than-expected exportable supplies. However, 2024/25 exports are still 18 percent higher than 2023/24 exports due to overall increased supply and improved demand from several international markets. The United States is expected to remain the largest destination market for Indonesian coffee green bean exports.

ID2024-0031 - On October 18, 2024, the Government of Indonesia issued Government Regulation No. 42/2024, which granted an extension until, “no later than October 17, 2026” for imported food and beverage products to come into compliance with Indonesia’s mandatory halal certification requirements. The specific length of extension which will be afforded to U.S. food and beverage products is not yet known. However, today’s action allows U.S. food and beverages (except meat and meat products) to continue to be sold in Indonesia without halal certification. FAS Jakarta will seek to clarify multiple aspects of the new regulation and provide updates accordingly.

ID2024-0039 - As FAS Jakarta previously reported, the Government of Indonesia granted an extension until, “no later than October 17, 2026” for imported food and beverage products to come into compliance with Indonesia’s mandatory halal certification requirements. This allows most U.S. food and beverage products to be exported to Indonesia without halal certification during the length of the extension. The exception is meat, meat products, and dairy products, which remain subject to halal certification requirements under a separate law. Based on conversations with Indonesia’s halal product assurance authority (BPJPH), FAS Jakarta anticipates the extension will likely be granted for the full two years. In addition, the previous requirement to get halal certificates apostilled was removed, saving U.S. exporters an onerous and bureaucratic step. Please note some of the guidance within this report is based on information gathered informally and may be subject to change.

ID2024-0038 - The signature campaign promise of the newly sworn-in Prabowo administration, the Free Nutritious Meals Program, will be a large driver of increased demand over the next five years as the program aims to provide milk to over 82 million beneficiaries daily by 2029. Indonesian 2024 dairy demand is projected to rebound back to 2022 levels at 4.2 million metric tons and increase to 5.3 million metric tons in 2025 due to the additional drinking milk consumption increase to meet the Government of Indonesia's 2025 target for the Free Nutritious Meals Program. The new administration will also be actively pushing for increased milk production through the importation of a target 1 million dairy cattle from various countries over the next five years.

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.

ID2024-0036 - This report serves as an update to FAS Jakarta’s October 4, 2024 report on the Indonesian Quarantine Authority’s (IQA) expanded “prior notice” requirements (please see GAIN Report ID2024-0028). Through an official letter dated October 4, 2024, IQA confirmed there is a “soft implementation phase” of the prior notice requirement until February 5, 2025. Once full implementation begins on February 6, 2025, FAS Jakarta understands that U.S. exporters must send a copy of the prior notice submissions to their importers. Please note that this and related clarifications are based on information gathered informally and may be subject to change.

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.

ID2024-0032 - On October 27, 2022, FAS Jakarta published a report summarizing the Directorate General of Livestock and Animal Health Service’s (DGLAHS)’s new requirements for importers to register fresh food of animal origin and obtain the resulting distribution license. Since DGLAHS has recently begun to enforce these requirements, importers are now asking U.S. exporters to provide a certificate of analysis (CoA) for at least one of the required testing parameters every six months. This report is based on our assessment of information gathered from DGLAHS and local industry to help U.S. exporters comply with the CoA requirements. U.S. exporters should endeavor to meet this requirement as soon as possible to avoid jeopardizing their sales to Indonesia. Since these requirements primarily impact U.S. beef exports, this report is focused accordingly. Please note that this guidance is based on information gathered informally and may be subject to change.

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.

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.

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.

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.

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.