Indonesia to prioritise wheat and soyabean imports from USA amid tariff deal
Indonesia will prioritize wheat and soybean imports from the U.S. under a US\$4.5 billion trade deal reducing tariffs and easing regulations. The pact, finalized in July between Presidents Trump and Prabowo, includes energy and aircraft purchases. Imports will fill domestic shortages while protecting farmers, with a wheat MoU covering 2026–2030.
The Indonesian government has announced plans to prioritise wheat and soyabean imports from the USA as part of a trade agreement aimed at reducing tariffs and establishing new agricultural trade channels between the two nations, UkrAgroConsult wrote.
Tied to a US$4.5bn agricultural import commitment, the initiative was linked to a wider reciprocal deal comprising energy purchases and aircraft acquisitions, the 31 July report said.
Agriculture Minister Andi Amran Sulaiman was quoted as saying that wheat and soyabeans were the primary focus of the import strategy, citing domestic supply shortages and the need to stabilise food prices.
“We are focusing on importing wheat and soyabeans from the USA. These are the two main commodities,” Amran said, adding that dairy products could be included in the future.
The agreement was finalised during a 16 July phone call between US President Donald Trump and Indonesian President Prabowo Subianto, UkrAgroConsult wrote.
As part of the deal, Indonesia would eliminate several non-tariff barriers and recognise US Food and Drug Administration (FDA) certifications for specific goods, while the USA would reduce tariffs on Indonesian exports to 19% from a previously proposed 32%, the report said.
According to Indonesia’s Central Statistics Agency (BPS), the country imported 2.68M tonnes of soyabeans in 2024, up nearly 18% compared to the previous year, with the majority sourced from the USA.
In the first nine months of 2024, wheat imports totalled 8.44M tonnes, with a value of US$2.56bn.
To strengthen the partnership, the Indonesian Flour Producers Association (APTINDO) had signed a memorandum of understanding (MoU) with US Wheat Associates, committing to purchase 1M tonnes/year of US wheat from 2026-2030.
Sulaiman said imports would only proceed if domestic production fell short, to ensure protection for local farmers.
“We will continue to safeguard our farmers. Imports will only occur when domestic production cannot meet national needs,” he added.
The agreement was seen as mutually beneficial, opening new markets for American farmers while enabling Indonesia to meet rising food demand without compromising local agricultural interests, the report said.
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Source : OFI
