Includes the barriers (tariff and non-tariff) that U.S. companies face when exporting to this country.
Agriculture Trade Barriers
Indonesia’s average Most Favored Nation (MFN) applied tariff rate was 8.1 percent in 2018 (latest data available). Indonesia’s average MFN applied tariff rate was 8.6 percent for agricultural products and 8.0 percent for non-agricultural products in 2018 (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, adding additional trade-restrictive requirements. Indonesia has continued to fail 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 bans salt imports during the domestic agricultural harvest season. It requires salt importers to be registered and to purchase domestic supplies as well as imports. Indonesia also 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 some types of processed foods and beverages starting in October 2024.