The End of the Quota Regime

TEMPO.CO, Jakarta - Sholahuddin was in Medina, Saudi Arabia, when news emerged that Indonesia would import 100,000 tons of corn annually from the United States. The purchase commitment, part of the Indonesia-US Reciprocal Trade Agreement, stunned the chair of the Indonesian Corn Farmers Association, who was performing the umrah minor pilgrimage at the time. "This import policy injures farmers," said the farmer from Lamongan, East Java, on Thursday, February 26, 2026.

The government's claim that the corn imports are intended solely for the food and beverage industry does little to reassure him. The policy contrasts with domestic production, which he believes can reach 24 million tons per year. With cheaper American corn entering the market, he fears feed companies would lower their purchase prices from local farmers.

Indonesia also imports corn from Argentina and Brazil. Data from Statistics Indonesia (BPS) show that corn imports have continued to rise, from 1.20 million tons in 2021 to 1.31 million tons in 2022 and 1.35 million tons in 2023. The following year, imports surged to 2 million tons, with increases concentrated in corn seed and popcorn.

Indonesia has also committed to importing 1,000 tons of specialty rice annually from the United States. Henry Saragih, Chair of the Indonesian Farmers Union, said the move contradicts Law No. 18/2012 on Food, which prohibits food imports when domestic needs are met. "The government keeps saying we have a surplus, so why import?" he said on Thursday, February 26, 2026.

Read the Complete Story in Tempo English Magazine

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