Indonesian Import Regulations Spark Food Price Uncertainty

The Indonesian government's recent changes to food import regulations have introduced new complexities for producers in the country. According to Permendag No. 11/2026, imports of certain agricultural commodities are now subject to stricter controls and approval procedures.

This includes soybean meal, feed wheat, broken rice for feed, mung beans, and peanuts, which were previously less regulated. The changes aim to strengthen the import regime and ensure that domestic production meets local demand.

However, these new regulations have created bottlenecks in the supply chain, leading to higher input costs and uncertainty over output prices for farmers. This is particularly evident in the poultry sector, where producers rely heavily on imported feed ingredients such as soybean meal and feed wheat.

The Free Nutritious Meals (MBG) program, which was expected to boost demand for poultry products, has instead led to a supply surplus and downward pressure on farm-gate prices. In August, thousands of poultry farmers in Central Java, Yogyakarta, and South Sulawesi staged protests over falling egg prices and rising feed costs.