Grain and Feed Annual 

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.

Oilseeds and Products Update

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.

Prabowo Staffs New Administration Pledges Self-Sufficiency as Core Tenant

ID2024-0051 – On October 20, 2024, Prabowo Subianto was sworn in as the eighth president of Indonesia, Southeast Asia’s largest economy. During his inauguration, President Prabowo announced he would consolidate and marshal executive and legislative power to build early momentum on his priorities, in particular food self-sufficiency, energy sovereignty, a Free Nutritious Meal Program, and “commodities down-streaming.” To fast-track his flagship Food Estate and school feeding programs, President Prabowo created a new Coordinating Ministry of Food Affairs. This report outlines key appointments within the Prabowo Administration and their priorities for background as imported products fall under increased scrutiny in Indonesia.

Dairy and Products Annual

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.