Indonesia Agricultural Trade Mission

SUCCESS STORY: Indonesia Millers Commit to Purchasing U.S. Wheat, Backed by Technical Assistance from U.S. Wheat Associates

U.S. Wheat Associates (USW) contributes success stories to the USDA Foreign Agricultural Service (FAS) to demonstrate the return on investment of market development programs, supporting continued federal funding for programs that identify, build and maintain international demand for all six classes of U.S. wheat.

Indonesia is consistently a top global three wheat-importing country, but this growth market is highly competitive and millers remain price sensitive. To secure U.S. market share and help balance the U.S.-Indonesian trade relationship, U.S. Wheat Associates (USW) achieved a historic breakthrough in cooperation with the Indonesian milling sector.

On July 7, 2025, USW signed a Memorandum of Understanding (MOU) with APTINDO, Indonesia’s flour milling association. Under the agreement, APTINDO committed to purchase a minimum of 800,000 metric tons (MT) (29.4 million bushels) of U.S.-origin milling wheat in calendar 2025 and then increase by an additional 25% to 1 million metric tons (MMT) (more than 36.7 million bushels), or an equivalent value of $250 million annually, from 2026 through 2030.

USW Regional Vice President for South and Southeast Asia Joe Sowers (front row, far left) participates in the signing of a Memorandum of Understanding with APTINDO, Indonesia’s flour milling association.
USW Regional Vice President for South and Southeast Asia Joe Sowers (front row, far left) participates in the signing of a Memorandum of Understanding with APTINDO, Indonesia’s flour milling association.

To support this commitment, USW used funding from the Regional Agricultural Promotion Program (RAPP) and the Market Access Program (MAP) to showcase the functionality of U.S. wheat. Activities included:

  • RAPP: Southeast Asia Regional Trade Team (August 2025): USW led flour mill executives from Indonesia, Vietnam, Thailand and the Philippines on a 1,500-mile road trip from Great Falls, Montana, to Portland, Oregon, to tour the U.S. wheat value chain from wheat farms to export facilities. During the mission, the Indonesian participant reported organizing his first combination cargo of U.S. wheat and soybean meal, purchasing 19,260 MT (708,000 bushels) of U.S. soft white (SW) and U.S. hard red winter (HRW).
  • RAPP: Grain Procurement Management Short Course (September 2025): USW sponsored a mill manager to attend the Grain Procurement Management for Importers short course at the Northern Crops Institute in Fargo, North Dakota. The seminar introduced the U.S. marketing system and provided training in purchasing strategies. During the seminar, the mill purchased 55,000 MT (2.02 million bushels) of U.S. wheat.
  • RAPP: Milling Consultants and Workshops (October 2025): USW organized for Shawn Thiele, milling specialist and associate director of the IGP Institute in Manhattan, Kansas, to deliver technical training to mill production staff. Thiele helped address mill-specific questions on how to optimally use U.S. wheat classes, which resulted in Indonesian milling companies investing in sifter capacity, implementing recommended tempering times and using recommended best practices for flour blending.
  • MAP: Crop Quality Seminars (November 2025): USW delivered comprehensive updates on supply and crop quality during a seminar, which was attended by more than 80 major wheat buyers and millers. Dr. Shahidul Islam of North Dakota State University shared research findings on the impact of dark, hard and vitreous (DHV) on flour and baking performance. Following the seminar, an Indonesian milling company reported that the research gave them confidence to lower their DHV specification in purchases of U.S. Hard Red Spring (HRS) wheat to 55%, aligning with crop averages and improving purchase value.
USW Leadership Team in Indonesia
In addition the activities detailed above, USW leadership traversed the Pacific Ocean in mid-October 2025 to bolster relationships with key customers in South Korea, Singapore and Indonesia and identify opportunities to increase U.S. wheat exports to the region.

These activities underscored USW’s commitment to supporting the Indonesian milling sector in meeting the terms of the MOU. As a result, Indonesia imported 832,588 MT (30.6 million bushels) of U.S. wheat from July to December 2025, exceeding its first-year commitments under the MOU. Purchases included four classes of U.S. wheat: HRS, HRW, SW and U.S. soft red winter (SRW). In comparison, Indonesia has imported an average of 500,000 MT (18.4 million bushels) from the United States over the last five marketing years, with sales varying widely from year to year.

In February 2026, the strength of the U.S.-Indonesian trade partnership was highlighted during the USDA Trade Mission to Indonesia, which was led by USDA’s Under Secretary for Trade and Foreign Agricultural Affairs Luke Lindberg. The mission visited an Indonesian flour mill and a leading biscuit manufacturer. USW also hosted a baking competition with California Raisins, showcasing U.S. agricultural products.

For the next five years, millers have an incentive to comply with the MOU, giving USW an opportunity to showcase the superior performance of U.S. wheat classes and reinforce the value of U.S. wheat beyond price. At the 1.0 MMT (more than 36.7 million bushels) per year commitment, U.S. wheat farmers will supply more than 10% of Indonesia’s expanding wheat foods sector.

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