Food Prices Imported by Indonesia from the US Are More Expensive Than Global Market Prices
Jakarta – A researcher from CORE Indonesia, Eliza Mardian, has expressed concern that Indonesia’s commitment to purchase several agricultural commodities from the United States has the potential to disadvantage the country. This is because Indonesia will be forced to pay relatively higher prices compared to other import sources offering more competitive rates.
“Some food commodities from the US are relatively expensive compared to what we typically purchase,” said Eliza Mardian, researcher at CORE Indonesia, in Jakarta on Wednesday, 25 February 2026. “So because of this agreement, we are forced to buy at relatively higher prices, rather than considering the competitiveness of goods,” she added.
Under the Indonesia-US trade agreement finalised on 19 February 2026, Indonesia has committed to purchasing US agricultural products valued at over US$4.5 billion. These purchases include soybeans, corn, wheat, cotton, and beef.
Indonesia will import at least 3.5 million metric tonnes of soybeans from the US annually for five years. Additionally, Indonesia has committed to purchasing 3.8 million metric tonnes of soybean meal annually for five years, at least 2 million metric tonnes of wheat annually for five years, and 163,000 metric tonnes of cotton annually for five years.
According to Eliza, commodity prices from the US are relatively higher compared to other suppliers, meaning Indonesia must pay significantly more for products that are actually available at more competitive prices on the global market.
She cited examples: corn from Argentina is available at US$193 per metric tonne (MT), whilst that from the US costs US$194 per MT. Wheat from Russia costs only US$228 per MT, compared to US$233 per MT from the US. Soybeans from Argentina cost US$405 per MT, whilst those from the US cost US$418 per MT.
Facing this reality, Eliza stated that the government needs to develop a strategy to protect domestic industry. One option is to provide subsidies to industry players for using domestically-produced raw materials.
For example, subsidising corn for livestock feed for small-scale farmers would simultaneously benefit both corn farmers and livestock producers. She also emphasised that protection for farmers and livestock producers remains crucial.
According to Eliza, when farmers are reluctant to cultivate crops because they cannot compete with imports, production may decline whilst demand continues to rise. This situation risks increasing import dependency and making Indonesia vulnerable to geopolitical disruptions.