ID2025-0024 - On May 22, 2025, FAS Jakarta organized the Indonesia Agricultural Biotechnology Showcase highlighting to Government of Indonesia (GOI) officials, university students, and other stakeholders Indonesia’s advances in the field of agricultural biotechnology. Indonesia is one of 32 countries in the world cultivating genetically engineered (GE) crops; however, new innovative products face a costly and interrupted approval processes that, if streamlined and made more efficient, can help Indonesia increase its biotechnology research, development, and production potential. Moreover, U.S. soybean and other GE product exports to Indonesia, valued at $1.75 billion in 2024, risk facing increased regulatory burdens without overall GOI support for biotechnology.

ID2025-0022 - On May 14, 2025, Indonesia raised export levies for most palm oil products, from 7.5 percent to 10 percent for crude products and up to 9.5 percent for refined products. The levy increases are meant to sustain the new B40 blend mandate program.

ID2025-0021- In 2025/26, Indonesia's coffee production is expected to grow by 5 percent, reaching 11.3 million bags on improved yields from favorable weather and increased inputs. Exports are forecast to rise by 7 percent to 6.5 million bags, while domestic consumption is predicted to be 4.8 million bags due to weak consumer spending. The United States remains one of the largest importers of Indonesian coffee green beans.

ID2025-0019 - For marketing year 2025/26, Indonesian sugarcane and plantation white sugar productions are forecast to further increase to 35.0 million metric tons (MMT) and 2.6 million metric tons (MMT) respectively. This is due to harvested area expansion as well as the impact of La Nina, which is predicted to last until April 2025. Due to the expected higher production of domestic plantation white sugar, the Government of Indonesia (GOI) issued no import allocations for plantation white sugar for 2025/26 and slightly reduced the raw sugar import allocation for refineries. In line with population growth and growing demand from the food and beverage industry but hindered by an increased health focus, 2025/26 sugar consumption is forecast to reach to 7.7 MMT of raw sugar equivalent.

ID2025-0018 - Indonesia offers significant opportunities for U.S. food ingredient suppliers to supply raw materials for its 100-billion-dollar food processing industry. The United States is the third largest agricultural supplier to Indonesia, with a 10 percent market share. Soybeans and dairy products made up about 52 percent of all U.S. agricultural products shipped to Indonesia in 2024. Halal certification will become mandatory for many foods, ingredients, and additives and for all processed food products starting on October 17, 2026. Ingredients and food products with good sales potential include dairy products, fresh fruit, pork, tree nuts, powdered cheese, dried egg yolk, baking inputs, sugars and sweeteners, textured soy protein, cornstarch, natural honey, odoriferous substances, wine, almonds, juices/concentrates, cherries, peaches, raspberries, blackberries, blueberries, prepared luncheon meats, frozen meals, and frozen bakery items.

ID2025-0017 - Following an estimated decrease of Indonesian cotton consumption in 2024/25 of 1.795 million bales, cotton consumption in 2025/26 is forecast to remain on par at 1.8 million bales. The decline is due to low global and domestic demand for Indonesian textiles and textile products, combined with tight competition with cheaper priced products in the local market, a weakening rupiah, and increased labor costs. The lack of a clear and consistent regulatory framework to support the textile industry in weathering the sustained downturn in textile demand will lead to further decline in cotton imports, which are forecast to decrease two percent to 1.8 million bales for 2025/26. The United States is the third largest supplier of cotton to Indonesia and the second largest importer of cotton fabrics from Indonesia.

ID2025-0016 - Sustained rainfall due to a subsiding El Nino and a weak La Nina that is predicted to last until April 2025 will likely lead to increased rice and corn production in 2024/25. Food self-sufficiency policies prioritized by Indonesia’s new administration, combined with a weakening Indonesian rupiah, and higher production are expected to severely curtail imports of corn and rice in 2024/25. Although the new President’s flagship Free Nutritious Meals program is slated to be well funded, it is expected to have limited effect on food and feed demand during its first year of implementation as suppliers await more certainty and clarity on procurement regulations before making operational adjustments.

Id2025-0007 - Indonesia’s palm oil export estimates for 2024/25 are lowered due to the rollout of the new B40 Biodiesel mandate which is expected to raise domestic industrial palm demand by 2 percent. The expansion of the government’s Free Nutritious Meals Program is projected to increase demand for soy-based foods as well as soy-based feed ingredients to fuel increased domestic production of animal protein for the program in 2024/25. Imports of soybean and soybean meal accelerated in the first two months of 2024/25 as prices softened.

ID2025-0009 - In January 2025, the Government of Indonesia (GOI) enacted a new regulation to curb exports of palm waste products, citing that they have already exceeded the “reasonable capacity,” in the hopes of shoring up feed stock supplies for domestic cooking oil and biofuels production. This measure is also an attempt to halt “mixture practices” of blending crude palm oil (CPO) with palm waste exports to circumvent the once higher CPO export levy and take advantage of foreign demand for waste-based feedstocks.

 ID2025-0006 - Indonesia’s new biofuel roadmap shows the government’s 10-year plan for higher biodiesel blending rates, bioethanol’s inclusion in non-subsidized gasoline, and drop-in biofuels. The roadmap draft also recognizes organic waste as a biofuel feedstock. Although the roadmap shows lofty blending goals for bioethanol, it lacks the additional regulations that provide subsidies to cover the price spread between bioethanol and gasoline like the ones that prop up the biodiesel blend mandate. Without these subsidies, fuel retailers and biofuel producers will remain disincentivized to meet the new bioethanol blend mandates. The roadmap does not address tariff rate reductions for imported bioethanol.