Indonesia

Market Snapshot 2018 - Indonesia - Commodity Table

Supply/Demand Basics

  • Top importer of CGM. 235,000 MT from U.S. in 2016/2017.
  • Huge discrepancy between official corn production (20 MMT) and USDA (9.6 MMT).
  • Feed mill production capacity of 20 MMT with 23.5 MMT expected in 2018.
  • Current feed mill capacity utilization of around 70-80%.

Country Overview

  • Population / growth: 263 million / 1.3%
  • Urban / growth: 55% / 2.5%
  • GDP / growth: $3.2 trillion / 5.2%
  • GDP per capita: $12,400
  • Archipelago consisting of 17,500 islands creates massive infrastructure difficulties.
  • 87% Muslim population, making it the largest Muslim country in the world.
  • Median age of 29 years old.
  • Fourth largest country in the world by population.

Trade and Market Share Issues

  • 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 42 kgs/capita.
  • Rampant swings in day-old chick prices leave boom/bust poultry operating environment.

Policy Issues

  • Government restricting feed millers’ access to imported corn and sorghum.
  • Government limiting corn imports to less than 640,000 MT in 2017.
  • BULOG (central desk) to hold national monopoly on corn importing.
  • Tariffs: 0% Corn, 5% CGM/CGF/DDGS, 30% Ethanol.
  • ASEAN member / TPP participant.

Market Snapshot 2018 - Indonesia - Chart