Wheat imports in Indonesia rise amid stronger demand and changing consumption trends
Indonesia’s wheat imports are surging to a record 13.2 MMT in MY 2025/26, driven by economic recovery, urbanisation, and rising food demand. As a fully import-dependent market, increased use in food and feed, along with strong milling capacity, is intensifying global competition among suppliers.
Wheat imports in Indonesia are rising in the MY 2025/26, driven by economic recovery, easing inflation, and shifting consumer habits. The country does not produce wheat due to its tropical climate and relies entirely on imports to meet domestic demand.
According to the USDA, Indonesia has become the world’s largest wheat importer this season, surpassing Egypt. Imports are forecast to reach 13.2 million tonnes, up significantly from 10.5 million tonnes in the previous year.
Growth is being fueled by rising flour consumption, urbanisation, and new food trends among younger consumers. The expansion of bakeries, restaurants, and food service businesses is also increasing demand for wheat-based products across the country.
Indonesia’s flour milling industry currently includes 31 mills with a total installed capacity of around 14.8 million tonnes per year. However, the government continues to tightly regulate feed wheat imports, with state-owned entities handling part of the procurement.
In 2025, restrictions on corn supplies pushed feed manufacturers to increase wheat usage in animal feed rations, further supporting import demand. The government later issued additional permits for feed wheat imports to stabilise the market.
During the first seven months of the season, Indonesia imported about 7.8 million tonnes of wheat, up more than 30% year-on-year. Australia remains the dominant supplier, accounting for nearly 38% of total imports, followed by Ukraine and Canada.
Meanwhile, the role of United States is expanding, with its market share doubling thanks to recent trade arrangements with Indonesian millers. Competition among exporters is expected to intensify further amid strong demand and tightening global supply conditions.
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Source : Ukr Agro Consult
