ID 2024 - 0022 - Indonesia palm oil exports are estimated to decline to 26.5 million metric tons (MMT) in 2023/24 on lower output and weaker demand from key destination markets. Post revised down 2023/24 palm oil production to 45.6 MMT as 2023’s El Nino led to much lower yields than previously anticipated. Indonesia 2023/24 soybean production is also revised down to 360,000 metric tons on reduced government assistance for soybean production. Post revises 2023/24 soybean meal imports down to 5.65 MMT on weak demand from the poultry feed industry.

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.

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.

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.

ID2024-0014 On April 2, 2024, FAS Jakarta held its second annual Ramadan iftar event at the U.S. Embassy’s @america cultural center. This year’s event, “Ramadan Delights with U.S. Products: featuring the Talents of Chef Vindex and a Conversation with U.S. Halal Certifying Bodies,” promoted high-quality U.S. food ingredients such as beef, cheese, dates, chickpeas, raisins, and seafood. These ingredients were integrated into local dishes traditionally served during Ramadan. This event also highlighted the diversity of the Muslim community in the United States and bolstered the confidence and trust of Indonesian consumers in the recently accredited U.S. halal certifying bodies issuing halal certificates for U.S. products exported to Indonesia. Halal certification will be mandatory in Indonesia for most food and beverages starting October 17, 2024.

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.

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.

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.

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.

ID2024-0005 On March 1, the Government of Indonesia’s Halal Product Assurance Agency (BPJPH) listed five U.S. halal certifying bodies (HCBs) on its website as fully accredited to issue halal certificates for U.S. products destined for the Indonesian market. The accreditation of these five HCBs is vital to providing U.S. suppliers with as many halal certification service providers as possible before enforcement of Indonesia’s mandatory halal certification law for most food and beverage products begins on October 17, 2024. U.S. producers seeking to send halal-eligible products to Indonesia should apply for halal certification either directly with the Indonesian government or through an accredited U.S. HCB. Mandatory halal certification does not apply to non-eligible products (i.e., haram/forbidden products such as those containing pork, alcohol, and other forbidden ingredients).

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.

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.

ID2024-0002 Indonesia’s Halal Product Assurance Agency (BPJPH) recently promulgated a new decree requiring imported products’ halal certificates issued by foreign halal certifying bodies be registered with BPJPH prior to the importation and distribution of the products within Indonesia. This report describes the registration process.

ID2023-0036 The United States is the second largest supplier of agricultural products to Indonesia with a 13 percent market share in 2022. Major exports include soybeans, wheat, cotton, milk powder, feeds and fodders, dairy, fresh fruit, and beef and beef products. These products also have the best growth potential due to insufficient local production to meet the growing demand for these goods. Despite an often challenging and unpredictable regulatory environment, especially for those products that compete with local goods, opportunities exist for exporters to supply Indonesia’s developed tourism market, growing food processing industry, and modern retail channels.

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.