Indonesian corn processors call for higher import quotas
Indonesia’s corn wet milling industry faces high-quality corn shortages after reduced import quotas, risking temporary plant shutdowns despite expanding processing capacity. USDA forecasts 13 million tonnes of corn production and 800,000 tonnes of imports in 2026/27, while wheat imports are expected to decline to 12.5 million tonnes.
Indonesia’s corn wet milling industry is facing a shortage of high-quality raw materials after the government reduced corn import allocations for the 2025/26 marketing year, according to a report by the US Department of Agriculture’s Foreign Agricultural Service (FAS). Analysts warn that some processing plants could suspend operations until additional food-grade corn imports become available.
The main challenge is that domestically produced corn does not meet the industry’s requirements for low aflatoxin levels and high starch content. Wet millers producing corn starch, high-fructose corn syrup, glucose syrup and maltodextrin prefer imported dent corn, which offers a significantly higher starch yield than locally grown flint corn.
Despite raw material constraints, the industry continues to expand its processing capacity. Installed wet milling capacity is projected to reach 5,000 tonnes per day in 2026/27, up from 4,500 tonnes per day a year earlier. However, FAS noted that reduced import quotas threaten the sector’s long-term growth, even though more than 55% of Indonesia’s starch demand is still met through imports.
FAS forecasts Indonesia’s 2026/27 corn production at 13 million tonnes harvested from 3.4 million hectares, virtually unchanged from the previous season. Corn imports are expected to increase to 800,000 tonnes, up from 600,000 tonnes in 2025/26, although still well below the estimated 1.28 million tonnes imported in 2024/25.
Feed corn consumption is projected to decline slightly by 1% to 9.5 million tonnes in 2026/27. Meanwhile, food use is expected to recover modestly to 4.4 million tonnes as greater availability of imported raw materials supports the resumption of wet milling operations.
FAS also projects Indonesia’s wheat imports at 12.5 million tonnes in the 2026/27 marketing year, down 500,000 tonnes from the previous season. Despite lower imports, the country’s flour milling industry continues to expand, supported by population growth, urbanization and rising demand for wheat-based food products.
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Source : Ukr Agro Consult
