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
