Indonesia

Supply/Demand Basics

  • Largest importer of CGM/CGF (169TMT) from U.S. in MY 2018/2019.
    • 4h Largest importer of DDGS (974 TMT) from U.S. in MY 2018/2019.
    • Huge discrepancy between official corn production (29 MMT) and USDA (12 MMT).
    • Feed mill production capacity of 25 MMT, with utilization of around 70-80%.
    • Indonesia surpasses Egypt as the top wheat importer country in the world (12.5 MMT).

Country Overview

  • Population / growth: 268 million / 1.1%
  • Urban / growth: 55% / 2.3%
  • GDP / growth: $3.7 trillion / 5.1%
  • GDP per capita: $14,840
  • Archipelago consisting of 17,500 islands creates massive infrastructure difficulties.
  • 87% Muslim population, making it the largest Islamic country in the world.
  • Median age of 29 years old.

Trade and Market Share Overview

  • Currency depreciation has eroded purchasing power.
  • Feed industry consists of 83% poultry feed and 11% aquaculture feed.
  • Corn suffers from strict import barriers, primarily for animal feed.
  • Low poultry consumption 7 kgs/capita vs. Malaysia of 46.5 kgs/capita.
  • Rampant swings in day-old chick prices leave boom/bust poultry operating environment.

Policy Overview

  • Government restricting feed millers’ access to imported corn and sorghum.
  • Government limiting corn imports for industrial use to 800 TMT in 2018.
  • BULOG (central desk) to hold national monopoly on corn importing.
  • Government restrictions U.S. ethanol imports.
  • Tariffs: 0% Corn, 5% CGM/CGF/DDGS, 30% Ethanol.
  • ASEAN member