Browse Data and Analysis

For marketing year 2025/26, Indonesian sugarcane and plantation white sugar productions are forecast to further increase to 35.0 million metric tons (MMT) and 2.6 million metric tons (MMT) respectively.

With favorable weather and steady fertilization, palm oil production is anticipated to rise 3 percent reaching 47 million metric tons (MMT) for 2025/26.

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

This report highlights the food processing industry, its drivers, key players, and market landscape in the Caribbean Basin. The region relies heavily on imports, and the United States is the largest supplier of food ingredients.

Following an estimated decrease of Indonesian cotton consumption in 2024/25 of 1.795 million bales, cotton consumption in 2025/26 is forecast to remain on par at 1.8 million bales.

Sustained rainfall due to a subsiding El Nino and a weak La Nina that is predicted to last until April 2025 will likely lead to increased rice and corn production in 2024/25.

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

Indonesia’s palm oil export estimates for 2024/25 are lowered due to the rollout of the new B40 Biodiesel mandate which is expected to raise domestic industrial palm demand by 2 percent.

Multiple aspects of Indonesian Quarantine Authority (IQA) regulation number 14/2024 could impact U.S. agricultural exports to Indonesia.

In January 2025, the Government of Indonesia (GOI) enacted a new regulation to curb exports of palm waste products, citing that they have already exceeded the “reasonable capacity,” in the hopes of shoring up feed stock supplies for domestic cooking oil and biofuels production.

Indonesia’s new biofuel roadmap shows the government’s 10-year plan for higher biodiesel blending rates, bioethanol’s inclusion in non-subsidized gasoline, and drop-in biofuels.

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).