Indonesia faces challenges meeting ambitious US farm import targets

Traders warn that Indonesia may fail to fulfill its pledge to increase US agricultural imports. Ambitious targets for soybeans and soymeal likely exceed demand.

Indonesia IDID has finalized a trade agreement with the United States USUS that significantly lowers tariffs on Indonesian goods while requiring Jakarta to sharply increase its imports of American agricultural products. Under the terms of the deal, which was completed last week, U.S. tariffs on Indonesian exports will drop to 19 percent from a previous level of 32 percent. This policy-driven shift marks a major change in the trade relationship between the two nations, though market participants have raised concerns regarding the feasibility of the ambitious purchase commitments.
Workers cook soybean at a tofu factory in Jakarta, Indonesia, on February 5, 2021, following the coronavirus disease (COVID-19) outbreak. REUTERS/Ajeng Dinar Ulfiana/File Photo
Workers cook soybean at a tofu factory in Jakarta, Indonesia, on February 5, 2021, following the coronavirus disease (COVID-19) outbreak. REUTERS/Ajeng Dinar Ulfiana/File Photo
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