Indonesia to Prioritize Wheat, Soybean Imports From US Under Tariff Deal
Indonesia will prioritize wheat and soybean imports from the US under a reciprocal trade deal linked to reduced US tariffs on Indonesian goods. Imports will supplement domestic supply without harming local farmers. The agreement includes a \$4.5 billion agricultural purchase commitment, boosting US exports and maintaining Indonesia’s trade surplus with America.
Indonesia will prioritize wheat and soybean imports from the United States as part of a reciprocal trade deal tied to Washington’s decision to lower tariffs on Indonesian goods, Agriculture Minister Andi Amran Sulaiman said on Friday.
Speaking after a high-level food coordination meeting, Amran said the government had agreed to import the two commodities directly from the US to help meet domestic demand while supporting the broader trade agreement with Washington.
“We are focusing on importing wheat and soybeans from the US. These are the two main commodities,” Amran said, adding that dairy products may also be considered in the future, but wheat and soybeans remain the priority for now.
Amran said imports would only proceed if domestic production was insufficient to meet demand, stressing the need to protect Indonesian farmers.
“We will continue to protect our farmers. Imports will only happen if domestic production cannot meet national needs,” he said.
The move comes after US President Donald Trump announced earlier this month that the US would reduce its import tariff on Indonesian products to 19 percent, down from the planned 32 percent. The tariff cut is part of a trade deal requiring Indonesia to purchase around $4.5 billion worth of US agricultural products, equivalent to approximately Rp 73 trillion.
Trump said the agreement would open new markets in Indonesia for American farmers, ranchers, and fishermen while reducing trade barriers. “We will have full access to Indonesia, everything. They pay 19 percent, and we pay nothing,” Trump said.
According to Indonesia’s Central Statistics Agency (BPS), the country imported 2.68 million tons of soybeans in 2024, up 17.7 percent from the previous year, with the vast majority sourced from the United States. Meanwhile, Indonesia recorded 8.44 million tons of wheat and meslin imports in the first nine months of 2024, valued at $2.56 billion. U.S. wheat accounted for around 6–7 percent of total import volume, well behind top suppliers such as Australia and Canada.
S&P Global reported that on July 7, the Indonesian Flour Producers Association (APTINDO) signed a memorandum of understanding with U.S. Wheat Associates, committing to purchase 1 million metric tons of US wheat annually between 2026 and 2030, according to US Wheat Associates and market sources.
The US remains Indonesia’s largest source of trade surplus. According to the Central Statistics Agency (BPS), the country recorded a $5.44 billion trade surplus with the US from January to April 2025, up from $4.37 billion in the same period last year. India and the Philippines followed as the next largest contributors to Indonesia’s trade surplus, with surpluses of $3.98 billion and $2.92 billion, respectively.
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Source : Ukr Agro Consult
