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Indonesia offers significant opportunities for U.S. food ingredient suppliers to supply raw materials for its 100-billion-dollar food processing industry.

In Indonesia, the pet food market (especially for cats) has seen remarkable growth, increasing 24.5 percent to reach $237 million in 2023.

This report serves as an update to FAS Jakarta’s previous report outlining Indonesia’s plans to impose a 12-percent value-added tax (VAT) for luxury agricultural products (please see GAIN Report ID2024-0053).

On November 18, 2024, the Government of Indonesia (GOI) issued Regulation No. 19/2024 on the Supervision of Genetically Engineered Food which updates the labeling requirements for genetically engineered (GE) products, and regulates microbial biotechnology, genome editing, and the food safety assessment of products with stacked genes

Indonesia’s National Agency of Drug and Food Control (BPOM) has drafted a new regulation that would mandate the use of a “Nutri-Level” front-of-pack labeling system for sugar, salt, and fat (SSF) content and set maximum SSF levels.

The signature campaign promise of the newly sworn-in Prabowo administration, the Free Nutritious Meals Program, will be a large driver of increased demand over the next five years as the program aims to provide milk to over 82 million beneficiaries daily by 2029.

Indonesia’s growing youth population, middle class, and urbanization offer promising opportunities for U.S. exporters. The retail sector had sales totaling $103 billion in 2023 with increased demand from convenience stores and traditional stores.

The 2023 U.S. Agricultural Export Yearbook provides a statistical summary of U.S. agricultural commodity exports to the world during the 2023 calendar year.

Indonesia offers significant opportunities for U.S. ingredient suppliers to meet the demand for raw materials for its food processing industry. The United States is the third largest agricultural supplier to Indonesia, with an 11-percent market share.

Although Indonesian dairy production is still reeling from the 2022 Foot and Mouth Disease (FMD) outbreak, imports of dairy ingredients are expected to decline in 2023.

In 2022, the total value of grocery retail sales in Indonesia reached $100 million, a 9 percent increase from the previous year due to the easing of pandemic-related measures.

The 2022 U.S. Agricultural Export Yearbook provides a statistical summary of U.S. agricultural commodity exports to the world during the 2022 calendar year.