Indonesian Political, Business & Finance News

Government reaffirms commitment to US agricultural imports will not burden state budget

| Source: ANTARA_ID Translated from Indonesian | Trade
Government reaffirms commitment to US agricultural imports will not burden state budget
Image: ANTARA_ID

Jakarta (ANTARA) - The Indonesian Government has reaffirmed its commitment to facilitate imports of agricultural products valued at $4.5 billion United States dollars within the framework of the Agreement on Reciprocal Trade (ART) between Indonesia and the United States will not burden the state budget (APBN).

Spokesperson for the Ministry of Coordinating Economic Affairs Haryo Limanseto stated that this commitment represents government policy support to facilitate business-to-business (B2B) cooperation between business actors from both nations, rather than purchases financed by the state budget.

“The government only acts as a regulator and quality standard guardian, whilst transaction decisions and financing rest entirely with the private sector,” said Haryo in a written statement in Jakarta, Sunday.

Haryo stated that the commitment to purchase agricultural commodities from the United States has also been implemented through a Memorandum of Understanding (MoU) between relevant companies.

The signings were conducted in two stages: the first stage on 7 July 2025 and the second stage at the Indonesia-United States Business Summit on 19 February 2026, supported by business associations such as the Indonesian Chamber of Commerce and Industry (Kadin) and the Indonesian Business Association (Apindo).

The Ministry of Coordinating Economic Affairs notes that the United States is a strategic trading partner and Indonesia’s second largest export destination. In 2025, Indonesia’s exports to the United States reached $31.0 billion, or approximately 11 per cent of Indonesia’s total exports to the world of $282.9 billion.

According to Haryo, maintaining access to the United States market through a balanced trade approach is a rational step to protect the competitiveness of national products.

This cooperation is also considered important for the interests of the domestic industry.

He explained that Indonesia has been importing several commodities such as wheat as the main raw material for processing industries, including export-oriented processed foods.

With the opening of wider and more competitive supply options, he believes business actors can obtain stable, quality and competitively priced raw materials.

Regarding the proportion of imports, Haryo stated that in 2025 Indonesia’s total imports from the United States for agricultural commodities were approximately $1.21 billion, whilst from various other countries it reached $13.2 billion. He said the share of agricultural imports from the United States was approximately 9.2 per cent.

Haryo gave the example of cereal (HS10) imports from the United States of $375.9 million from total imports of $3.7 billion, and soybean (HS12) imports from the United States of only $1 million from total imports of $1.6 billion.

“This shows that the scope for supply adjustments remains based on commercial considerations and does not create fiscal burden,” he said.

He conveyed that the facilitation of agricultural product imports within the framework of the Indonesia-United States ART is part of the strategy to strengthen market access whilst supporting the value chain of national industries.

He ensured that this policy remains oriented towards the interests of the national economy and sovereignty.

Haryo added that the government will ensure all imports meet applicable quality and safety standards.

He stated that if there is disruption to the domestic market, steps in accordance with regulations will be immediately taken to maintain stability.

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