US aims to increase agricultural exports to Indonesia

A free trade agreement and growing demand for healthy foods are creating new opportunities for American agricultural exports to Indonesia.

Indonesia is emerging as one of the fastest-growing markets for American agricultural exports, with trade volume estimated at $2.9 billion in 2024. According to the USDA Foreign Agricultural Service (FAS), the country ranks 11th among the largest buyers of American produce, and a growing middle class, young population, and increased demand for healthy foods are creating significant opportunities for U.S. exporters.

In July, President Donald J. Trump announced a landmark trade agreement with Indonesia, which promises to remove tariff barriers on more than 99% of American exports and exempt agricultural products from import licensing requirements. Once finalized, the agreement will provide unprecedented access to Indonesia’s vast consumer base.

Soybeans remain a key commodity for the United States, providing nearly 90% of the country’s tofu and tempeh production needs. Demand for wheat is also growing: the Indonesian Flour Mills Association plans to purchase at least 1 million tons of American wheat between 2026 and 2030. Other important export commodities include cotton, beef, dairy, and seafood: American fish shipments increased by 85% in 2024.

However, certain risks remain. Regulatory uncertainty and mandatory halal certification requirements, which will expand in 2026, will require close cooperation between American suppliers and local importers. Strong competition from Australia, New Zealand, Brazil, and China is also affecting market conditions.

Nevertheless, US food products enjoy high demand and a reputation for quality among Indonesian consumers. Given projected economic growth and the upcoming trade agreement, Indonesia is emerging as a key market for expanding American agricultural exports.

Tags: Indonesia, agricultural products, USA