Overview

Table: Total Market Size = (Total Local Production + Total Import) - Unit: USD millions

Source: Global Trade Atlas (GTA) on Connect Trade Data. Average exchange rate of Indonesian Rupiahs to U.S. dollars from the World Bank.
 

Indonesia’s Agricultural Sector 

Indonesia’s agricultural imports for fresh products and processed foods have continued to rise, reaching $29.6 billion in 2024, up from over $28 billion in 2022. This increase highlights the country’s growing reliance on imported agricultural products to satisfy domestic demand, particularly in the face of limited local production capacity (USDA Foreign Agricultural Service). The most frequently imported commodities include soybeans, wheat, rice, beef, fresh fruits, and various feed ingredients. These categories remain dominant as local producers cannot keep pace with the needs of Indonesia’s expanding population and increasingly urbanized consumer base.

As of 2023, Brazil emerged as Indonesia’s most significant agricultural supplier, accounting for 14% of total import value, followed closely by Australia at 13%. The United States, China, and India ranked the top five suppliers. These countries were responsible for approximately 58% of Indonesia’s total agricultural imports, underscoring their significant influence in shaping the country’s food and agricultural supply chains (USDA Foreign Agricultural Service).

The United States remained Indonesia’s third-largest agricultural supplier in 2023, holding an 11% market share. U.S. exports support Indonesia’s food security and industrial needs, particularly in categories where domestic production falls short. Soybeans stood out as a core export, with over 2 million metric tons shipped to Indonesia in 2022.

However, not all product categories experienced growth. According to the USDA Foreign Agricultural Service’s Global Agricultural Trade System (GATS), U.S. dairy exports to Indonesia declined by $148 million in 2023—a 33% drop from 2022. U.S. wheat exports also fell by 34% to $85.2 million. Meanwhile, U.S. cotton exports continued their downward trend, decreasing by 16% to $196.1 million in 2023 and dropping a further 29% to $138.5 million in 2024. (Economic Research Service, USDA Foreign Agricultural Service).

In 2025, the Indonesian government allocated 9.5 million tons of subsidized fertilizers to boost national agricultural productivity. This includes 4.6 million tons of urea, 4.2 million tons of NPK, 500,000 tons of organic fertilizer, and 147,000 tons of cocoa-specific NPK. Backed by a Rp 46.8 trillion (approximately USD 2.9 billion) budget, the initiative underscores a strong commitment to food security and farmer support.

By March 2025, national fertilizer stock reached 1.63 million tons, comprising 1.19 million tons of subsidized and 445,000 tons of non-subsidized fertilizer. To enhance efficiency, the government launched a three-tier distribution system integrated with the i-Pubers app, allowing farmers to access subsidized fertilizers using their national ID. This digital approach led to the distribution of over 1.52 million tons by March, surpassing the same period in 2024.

Under Presidential Regulation No. 6 of 2025, the subsidy coverage was expanded to include organic fertilizers, urea, NPK, SP-36, and ZA. President Prabowo Subianto approved fertilizer imports to address shortfalls in domestic production, aiming to stabilize supply and support national food self-sufficiency.

PT Pupuk Indonesia has strengthened its logistics network to support these efforts, operating through over 1,067 official distributors and 27,000 partner kiosks. Backed by a robust transport system involving ships, trucks, and trains, these improvements ensure timely fertilizer delivery across the archipelago’s vast and varied terrain.

Indonesia is advancing agricultural digitalization and infrastructure to enhance sector efficiency and resilience. Central to this effort is the Agricultural War Room (AWR), established in 2021, which integrates real-time data from the Digital Collection Platform (DCP), a system developed by the Ministry of Agriculture, Gadjah Mada University, and the FAO. The AWR supports national decision-making using data collected by field officers and validated through pilot projects in Yogyakarta, Bali, and Subang. Guided by the National E-Agriculture Strategy Roadmap, Indonesia aims to develop an integrated farmland and farmer database by 2027, alongside digital tools such as early warning systems for agricultural threats. These initiatives reflect the country’s commitment to leveraging technology to boost agricultural productivity, sustainability, and resilience.

Indonesia’s AgTech sector has seen significant growth, with startups like Aruna and FishLog leading innovations in aquaculture and fisheries. Other notable startups include Sayurbox, Super, Semaai, iGrow, Eden Farm, Jala, PasarMIKRO, and Chilibeli, which are contributing to advancements in supply chains, market access, and financial services for farmers. 

PT PLN’s Electrifying Agriculture (EA) program, launched in 2021, has significantly advanced the modernization of Indonesia’s agricultural sector by integrating electric-powered technologies into farming, fisheries, plantations, and livestock operations. By the end of 2024, the program served over 300,000 customers, up from approximately 241,700 in 2023. The initiative focuses on transitioning agricultural operations, such as irrigation pumps and rice milling machines, from fossil fuels to electricity, enhancing efficiency and reducing environmental impact.
 

Leading Sub-sectors

Dairy Products

Indonesia imports around 80% of its dairy needs, including skim milk powder, whey, whole milk powder, lactose, and cheese. In 2023, it was the world’s third-largest importer of skim milk powder, though total imports fell by 14% due to licensing hurdles, weakened consumer spending, and election-related uncertainty. A new $7.5 billion government initiative for free school meals and milk is expected to boost demand significantly. Major players like Nestlé Indonesia, Frisian Flag, and Danone’s Sari Husada—who collectively hold nearly 40% of the market—are poised to benefit, alongside international suppliers.

Beef

Indonesia imported 307,825 metric tons of bovine products in 2023—it’s highest in years—driven by strong demand from the manufacturing and foodservice sectors and increased Australian supply. The U.S., Indonesia’s third-largest beef supplier after Australia and India, held a 7% market share. However, 2024 quotas were reduced to 145,250 MT—only a third of what was requested—due to import licensing delays. In 2024, Indian buffalo meat imports fell by 63.7% compared to 2023, while Brazilian beef imports surged by 338%. Despite the sharp increase, Brazilian beef imports remained 48% below the all-time high recorded in 2022. Demand peaks during Islamic holidays, pushing market prices to $10/kg. U.S. beef is mainly found in modern retail and foodservice channels, often in premium or processed forms.

Fresh Fruits

Despite abundant local production, Indonesian fruit consumption remains low—just 88.5 grams per person daily, half the WHO recommendation. Urban health trends and continued online purchasing habits are driving fresh fruit demand. In 2023, fruit imports totaled $1.3 billion, a 3% drop due to reduced imports of apples, longan, and other key varieties. Apples, pears, grapes, and citrus comprised 89% of total imports. Imported fruits are sold widely in modern retail, often pre-packaged and ready to eat. Demand spikes during Chinese New Year and Eid al-Fitr, though long and unpredictable import licensing, sometimes taking over two months, has caused missed market opportunities.

Snack Foods

Demand for imported snacks remains strong, particularly through supermarkets and hypermarkets. While product registration can be difficult, exporters with reliable local partners face little competition in niche categories. Snacking is deeply rooted in Indonesian culture, and the growth of premium retailers like Ranch Market, Farmers Market, Grand Lucky, Kem Chicks, and AEON is creating new opportunities. Health-conscious consumers also demand natural snack alternatives like dried fruits, vegetables, and bread chips. PepsiCo’s $200 million investment in a local snack factory—slated for completion by 2025—signals growing market potential.

Processed Vegetables

French fries dominate processed vegetable imports, which rose 26% in 2023. Belgium leads the market (31% share), followed by the U.S. (21%), China (18%), and the Netherlands (16%). Domestic potato varieties are not yet suitable for French fry production, limiting local supply. Other notable imports include cassava starch, dried onions, and potato starch. Chinese frozen potato imports soared from $408,000 in 2021 to $25 million in 2023 and continue to rise in 2024.

Other Primary Ingredients

Due to limited local production, Indonesia heavily depends on imports for key staples like wheat, soybeans, corn, and refined sugar. Wheat is not cultivated domestically, making imported wheat essential for all flour-based food production.
 

Opportunities & Challenges

U.S. agribusiness companies see promising opportunities and significant challenges in Indonesia’s growing agricultural market. The country’s expanding population and middle-class drive demand for feed crops, fruits, and vegetables, creating openings for U.S. firms to supply agricultural inputs and technologies. Recent trade developments, such as the reinstated fast-track approval for U.S. apple exports, reflect the importance of market access for American products. 

However, U.S. companies must contend with several obstacles. These include complex import licensing and quota systems, especially for meat products, which can delay or restrict market entry. Indonesia’s protectionist policies, including local content requirements, may further challenge the competitiveness of foreign firms. Moreover, environmental concerns, such as deforestation and the sustainability of palm oil production, require U.S. companies to uphold rigorous ethical and environmental standards. Merger of Indonesian Agriculture Quarantine Agency (IAQA) and Indonesian Fishery Quarantine Agency (IFQA) into one Indonesian Quarantine Agency (IQA) in 2022 leads to the issuances of numerous and rigorous quarantine regulations. The new requirements on Prior Notice which now applies to imports of all agricultural commodities as well as the 21-day rule of Phytosanitary Certificate issuance have become additional significant obstacles for exports of U.S. agricultural commodities to Indonesia. Additionally, import licenses for agricultural products are a significant and long-standing trade irritant based on Indonesia’s increasingly aggressive food self-sufficiency goals. 

Lack of certainty on halal certification requirements remain a significant challenge impacting U.S. agricultural exports.

• Overall, Indonesia offers substantial potential for U.S. agribusiness engagement, but success depends on navigating regulatory hurdles and aligning with sustainability and local compliance expectations.

Resources

• Food and Agricultural Import Regulations and Standards Country Report
• USDA Foreign Agricultural Service GAIN Reports
• Retail Foods Report
• Food Processing Ingredients Report

 Exporter Guide

•  USDA Foreign Agricultural Service

Interested parties may contact Commercial Specialist Pepsi Maryarini at Pepsi.Maryarini@trade.gov