Indonesia’s recent trade agreement with the United States, valued at US$4.5 billion, is being hailed as a major opportunity for the country’s agricultural sector, following the reduction of import tariffs on Indonesian products by Washington.

Minister of Agriculture Amran Sulaiman said that the deal, which covers various agricultural goods, includes significant tariff reductions that favor Indonesian exports.

“The biggest product in the deal is wheat. But we are grateful because the import tariff has been reduced from 34 percent to 19 percent. For comparison, Malaysia is still at 24 percent,” Amran told reporters on the sidelines of the “Kagama Leaders Forum Series” in Jakarta on Thursday, July 17, 2025.

He noted that the lowered tariffs provide a strategic opening for Indonesia, especially in key commodities such as crude palm oil (CPO). “This creates a golden opportunity for our agriculture,” he said.

Amran also addressed concerns over whether the US$4.5 billion commitment would clash with Indonesia’s domestic food security program. “I don’t think it’s a problem. We usually import corn, but if we have enough stock, we don’t need to. That’s the key,” he cited.

However, the agriculture ministry has yet to release a detailed breakdown of which specific agricultural products will be included in the US$4.5 billion trade value, but analysts suggest it may include grains, palm oil, and other major export commodities.

Amran emphasized that imports will still be guided by recommendations from the agriculture ministry to avoid disrupting local supply chains or hurting domestic farmers.

As part of the agreement, Indonesia has pledged to increase its imports of American agricultural products, but officials maintain this will be done without compromising the government’s food resilience strategy.

“This is actually a strong position for us,” Amran said. “If we look at the figures, Malaysia at 24 percent, Indonesia at 19 percent, it clearly puts us in a better place. So if our CPO enters the U.S. market, who wins? Indonesia,” Amran concluded.