July 29, 2025

Indonesia to prioritise wheat, soybean imports from US as part of trade agreement

Indonesia will prioritise 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 July 25.

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 added that 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%, down from the planned 32%. The tariff cut is part of a trade deal requiring Indonesia to purchase around US$4.5 billion worth of US agricultural products.

According to Indonesia's Central Statistics Agency (BPS), the country imported 2.68 million tonnes of soybeans in 2024, up 17.7% from the previous year, with the vast majority sourced from the US.

Meanwhile, Indonesia recorded 8.44 million tonnes of wheat and meslin imports in the first nine months of 2024, valued at US$2.56 billion. US wheat accounted for around 6–7% of total import volume, well behind top suppliers such as Australia and Canada.

- The Jakarta Globe