Indonesian Flour Millers Commit to 1 Million Metric Tons in Annual U.S. Wheat Purchases

U.S. Wheat Associates (USW) welcomed the July 7 signing of a Memorandum of Understanding (MOU) with APTINDO, Indonesia’s flour milling association. Under the agreement, APTINDO committed to doubling its annual purchases of U.S. wheat to 1 million metric tons (36.7 million bushels) each year for the next five years.  

Kansas wheat farmers will benefit directly from this new agreement with APTINDO. As one of the nation’s leading wheat-producing states and a major supplier of Hard Red Winter (HRW) wheat, Kansas plays a critical role in meeting this increased demand.

Kansas farmers have historically contributed a large portion of U.S. wheat exports to Southeast Asia. HRW constitutes 27% of U.S. wheat exports to Indonesia over the last 10 marketing years, meaning Kansas-grown HRW will be important to help fill additional shipments under the new commitment, supporting farm prices and reinforcing the importance of maintaining export-quality grain.

The announcement also highlights the value of continued investment in wheat research, breeding for quality and international market development, efforts strongly supported by Kansas wheat checkoff dollars. As global buyers prioritize quality and reliability, Kansas wheat producers are well-positioned to remain a trusted source.

A Shared Commitment

“The administration has encouraged trading partners to buy additional U.S. agricultural products. The commitment of the Indonesian milling industry to purchase U.S. wheat reflects this increased focus by the Indonesian government to improve the trade balance with the United States,” said USW President and CEO Mike Spier. “The collaboration between the U.S. wheat industry and APTINDO reflects our shared commitment to delivering high-quality U.S. wheat and supporting continued growth in Indonesia’s milling sector.”

“By increasing our purchases of U.S. wheat, Indonesian millers are not only securing a vital, high-quality agricultural commodity for our growing market, but also actively contributing to the shared goal of a more balanced trade relationship between our two nations,” said APTINDO Chairman Franciscus Welirang.

Indonesia is one of the largest wheat importers in the world, but the market is highly competitive. Indonesian wheat consumption for food use has increased by 22 percent over the past decade. Rapid growth in demand for wheat foods is expected to continue, including higher quality products favoring flour from U.S. wheat classes.  

Indonesia has imported an average of 500,000 metric tons (18.4 million bushels) from the United States over the last five marketing years, including shipments exceeding 792,000 metric tons (29.1 million bushels) in the 2024/25 marketing year that ended on May 31. Under the new agreement, APTINDO agreed to purchase a minimum of 800,000 metric tons (29.4 million bushels) in U.S. origin milling wheat in 2025 and then increase an additional 25 percent to 1 million metric tons (36.7 million bushels), or an equivalent value of $250 million, annually through 2030. 

Major Milestone Reached

“The MOU signing marks a major milestone for the Indonesian milling industry and U.S. wheat producers,” said Joe Sowers, USW regional vice president for South and Southeast Asia. “Sales made over this five-year period will provide an opportunity to showcase the reliability and functionality of U.S. wheat. USW plans to work with our partners in Indonesia to leverage this commitment into long-term growth of U.S. wheat supply to this Southeast Asian market through additional technical support and assistance with capacity building.”

The signing follows the announcement of a specific import protocol for U.S. origin that adjusted sanitary and phytosanitary (SPS) regulations related to fumigation and traceability requirements. This phytosanitary barrier was resolved in mid-June 2025 following 18 months of coordination and information sharing between USDA and the Indonesia Quarantine Agency (IQA).  

This effort to demonstrate U.S. wheat safety and quality helped protect sales to Indonesian millers as prices became more competitive.  

“Together, these trade policy developments keep U.S. wheat competitive in this substantial Southeast Asian market,” Spier said. “Today, we are celebrating continued market access and deeper ties between U.S. wheat farmers and Indonesian millers.”  

Learn more about USW’s work to promote U.S. wheat in Indonesia and around the world at uswheat.org.