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USDA Retail Foods Update

Indonesia: Consumer-oriented agricultural imports are growing

In 2018, Indonesia’s imports of consumer-oriented agricultural products grew to $5.9 billion, an 8.5 percent increase from the previous year. Increasing urbanization and a growing middle-class suggest continued modern retail sector growth. Strong regional trade competition and a bureaucratic product registration process present challenges for market entry of U.S. products.

Foodservice sector
The foodservice activity’s total contribution to GDP was about $22 billion (Rp317 trillion) in 2018, and registered about 7.2 percent growth. The sector is dominated by small restaurants, street-side restaurants and vendors that sell food to customers on the street.

Competition
The export value of U.S. agricultural and related products increased 5.3 percent to $3.4 billion in 2018, making it the largest exporter of such products to Indonesia followed by China, Thailand, Australia and Argentina. In 2018 Indonesia’s imports of consumer-oriented agriculture products grew to $5.9 billion, an 8.5 percent increase from the previous year. China, Australia and India are the main competitors of U.S. consumer-oriented agricultural products to Indonesia due to price, lower tariffs and proximity.

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