Indonesia looks to buy more US wheat in bid for trade deal

2025-07-07 04:14:26 ET

Indonesia, the world’s second-largest wheat importer, aims to increase its wheat purchases from the U.S. as it moves to finalize a trade agreement before the approaching tariff deadline....

The Southeast Asian country is set to sign a memorandum of understanding for wheat procurement covering 2025-2030 with the U.S. in Jakarta on Monday, Franciscus Welirang, chairman of the Indonesian Flour Mills Association (Aptindo), told Bloomberg .

Indonesia is expected to purchase at least 800,000 tons of wheat from the U.S. this year, an increase from 740,000 tons in 2024, he said.

Indonesia has offered to cut duties on key imports from the United States to "near zero" and to buy $500 million worth of U.S. wheat as part of its tariff talks with Washington, its lead negotiator and a wheat industry association told Reuters.

Starting in 2026, annual imports are projected to reach a minimum of 1 million tons. The last time U.S. wheat exports to Indonesia exceeded 1 million tons was in 2020, when shipments totaled approximately 1.2 million tons, according to USDA data.

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