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.

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.