Agriculture Trade Barriers
Indonesia’s average Most Favored Nation (MFN) applied tariff rate was 8.1 percent in 2019 (latest data available). Indonesia’s average MFN applied tariff rate was 8.7 percent for agricultural products and 8.0 percent for non-agricultural products in 2019 (latest data available). In the agricultural sector, tariffs on more than 1,300 products have bindings at or above 35.5 percent.
Import Licensing for Agricultural Products: Since at least 2012, Indonesia has maintained unjustified and trade-restrictive licensing regimes for the importation of horticultural products, animals, and animal products. Indonesia has amended its import licensing regimes several times to bring its measures into compliance with WTO rules. Resolution of licensing issues remains a high priority for horticultural exporters, and both parties remain engaged in dialogue to resolve these issues.
Import Bans and Restrictions: Indonesia imposes restrictions on feed corn imports, limiting the right to import to the state-owned procurement body, the Bureau of Logistics (BULOG). However, some corn imports intended for starch manufacturing are allowed. As Indonesia’s sole importer of feed corn, BULOG prioritizes corn distribution to small-holder poultry farmers. The import volume is set based on the level of domestic feed production. Other feed millers are obligated to use locally produced feed corn but have expressed concern that they are unable to obtain feed corn in quantities sufficient to maintain the poultry industry’s growth.
Indonesia maintains a seasonal ban on imports of sugar, in addition to limiting the annual quantity of sugar imports based on domestic production and consumption forecasts.
Indonesia applies quantitative limits on the importation of wines and distilled spirits. Companies must apply to be designated as registered importers authorized to import alcoholic beverages, with an annual company-specific quota set by Ministry of Trade.
Sanitary and Phytosanitary Barriers
Beef and Pork: Indonesia requires each U.S. meat establishment seeking to export to Indonesia to complete an extensive questionnaire that includes proprietary information, and to be inspected by Indonesian inspectors, before it can ship meat to Indonesia.
Animal-Derived Products: Indonesia’s animal health and husbandry law (Law 18/2009, as amended by Law 41/2014) requires companies that export animal‐derived products, such as dairy and eggs, to Indonesia to complete a pre‐ registration process with MOA. The law allows imports of these products only from facilities that Indonesian authorities have individually approved.
In 2017, MOA began applying inspection fees on all animal product establishments seeking to export to Indonesia under Government Regulation 35/2016. These inspections are mandatory to obtain export eligibility certificates and consist of a “desk audit” of application materials ($1,200), an on-site facility inspection ($925 per auditor, per day), and a post-audit desk review ($1,200). U.S. exporters must also pay for MOA officials’ transport and lodging costs while conducting inspections in the United States. In total, companies seeking to export to Indonesia could pay up to $10,000 for an inspection.
Halal certification will be mandatory for nearly all food and beverage products starting in October 2024.
In May 2022, the Ministry of Religious Affairs’ Halal Product Assurance Organizing Agency (BPJPH) accepted the 2007 Working Group Agreement on Trade in Agriculture and Industrial Goods under the U.S. – Indonesia Trade Investment Framework Agreement (TIFA) as the umbrella agreement under which mutual recognition agreements (MRA) between BPJPH and U.S. Halal Certifying Bodies (HCB) can be established. An MRA between BPJPH and each U.S. HCB must be signed in order for the HCB to be recognized by BPJPH, allowing the HCB to issue halal certificates for U.S. exports to Indonesia.
For a full review of Indonesia’s trade barriers, please see the Indonesia section of the United States Trade Representative’s National Trade Estimate on Foreign Trade Barriers 2022.