Browse Data and Analysis

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

On December 16, 2024, the Government of Indonesia (GOI) announced the increase in value-added tax (VAT) from the current 11 percent to 12 percent on selected goods and services, effective January 1, 2025. In addition, a separate 12 percent luxury goods sales tax will newly be applied for luxury products intended for high-end Indonesian consumers (luxury VAT).

Indonesia’s launch of B30 in January 2020 is expected to increase 2019/20 industrial consumption of palm oil to 9.2 million tons, raising total domestic consumption to a record 15.61 million tons.

Cotton imports for 2018/19 are lowered to 3.05 million bales due to competition from imported yarn and fabrics, a weak rupiah, and lower demand from export markets for garments.

Indonesia’s 2019/20 coffee exports are expected to increase by 400,000 bags based on higher production and competitive pricing for both Robusta and Aribia varieties.

Hampered by several constraints, domestic fluid milk production is expected to only marginally increase in 2019.