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Indonesia to import US wheat and corn as trade tariff deal

Source
Tempo - July 17, 2025

Alfitria Nefi P, Jakarta – Minister of Agriculture Amran Sulaiman stated that Indonesia will import wheat from the United States as a result of the reciprocal trade tariff reduction agreement. "Wheat is the biggest one," said Amran to journalists at the RRI building on Thursday, July 17, 2025.

According to Amran, the plan to import corn does not contradict the domestic food security program. However, according to Amran, the import of food commodities is based on the recommendation of the Ministry of Agriculture. "If we have enough, there is no need for importation," he said.

Regarding the tariff rates, Amran mentioned Indonesia's negotiation results as a golden opportunity to export palm oil to the United States. Furthermore, he stated that Indonesia only received a reciprocal share of 19 percent, which is smaller than Malaysia's current share of 24 percent. "There is a gap, which is CPO (crude palm oil). Our only competitor is Malaysia," he said.

Agricultural observer Syaiful Bahari responded to the 19 percent reciprocal tariff agreement imposed by the United States on Indonesian products. Meanwhile, U.S. products can enter Indonesia freely.

President Donald Trump said that Indonesia will purchase some of the U.S. products, including agricultural products.

Syaiful said that the type of agricultural products to be bought from the U.S. must be considered first. "Agricultural commodities or processed agricultural products that cannot be efficiently produced domestically, or that Indonesia is not capable of producing independently at the moment, should indeed be opened," he told Tempo on Wednesday, July 16, 2025.

In this case, according to Syaiful, it will not affect Indonesian farmers unless the products that can be produced independently by Indonesian farmers are involved.

"Unless the exemption of import tariffs applies to agricultural commodities predominantly cultivated by farmers, such as rice, corn, and legumes, the government must protect them," he said.

If restrictions on the import of commodities that cannot be produced domestically are tightened, according to Syaiful, it will be detrimental to the industry and consumers. This is because the prices of end products will become more expensive.

He advised the government to carefully consider the opportunities and challenges arising from this reciprocal tariff policy. Syaiful said Indonesia has a chance to increase its exports of tropical agricultural commodities to the United States. "However, our commodities must be competitive with Vietnam, Thailand, and neighboring countries in the Americas," said Syaiful.

– Annisa Febiola contributed to the writing of this article

Source: https://en.tempo.co/read/2029447/indonesia-to-import-us-wheat-and-corn-as-trade-tariff-dea

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