Indonesia Says Wheat Supply Is Secure as Importers Diversify Beyond Ukraine
Indonesia says its wheat supply remains secure despite the risk of disruption from the Russia-Ukraine war. Importers can source from Australia, Canada and the United States, while duty-free access for US wheat could further support the food-processing industry.
Government sees no immediate wheat shortage
Indonesia’s wheat supply remains secure despite the potential for the Russia-Ukraine war to disrupt global trade, Trade Minister Budi Santoso said on 28 August 2026. Speaking at a press conference at the Ministry of Trade, he said wheat deliveries were continuing normally and that the country did not depend exclusively on Ukraine.
The assurance is significant for Indonesia’s food-processing industry because domestic industrial demand cannot be fully met by locally available raw materials. According to Liputan6.com, importers have several alternative origins available, giving buyers room to redirect purchases if geopolitical developments interrupt shipments from a particular supplier.
Australia, Canada and the US provide alternatives
Budi identified Australia, Canada and the United States among Indonesia’s wheat suppliers. This range of origins reduces exposure to a disruption in any single exporting country and allows importers to respond as freight conditions, availability and geopolitical risks change. The minister said the Ministry of Trade’s mitigation approach was to open access to alternative supplier countries when geopolitical events affected supply chains.
He pointed to Indonesia’s experience with naphtha as an example of how sourcing can shift. Supplies had previously come largely from the Middle East, but constraints prompted the country to seek alternatives from the United States, India and the United Arab Emirates. Budi argued that markets can adjust quickly when geopolitical conditions change, with new suppliers offering material as established trade routes come under pressure.
Tariff relief could support processors
The wheat outlook is also linked to Indonesia’s trade agreement with the United States. Liputan6.com reported that the Agreement on Reciprocal Trade signed by the two countries provides import-duty exemptions for US wheat and soybeans. Adhi S Lukman, chairman of the Indonesian Food and Beverage Producers Association, known as Gapmmi, welcomed the measure on 21 February 2026.
Adhi said access to duty-free US raw materials could support industry growth, ease the burden on consumers buying processed products and improve competitiveness. He also said these imported industrial inputs either were unavailable domestically or could not be supplied locally in sufficient quantities for industrial-scale demand, limiting the risk of displacement for Indonesian farmers.
Diversification remains the central safeguard
The government’s position rests on supplier diversity rather than an expectation that geopolitical risks will disappear. For millers, food manufacturers and importers, access to Australia, Canada and the United States provides procurement options if Black Sea trade becomes less reliable. The US tariff concession may make one of those alternatives more commercially attractive, although the source material provides no figures on import volumes, prices or the size of the duty reduction.
Indonesia’s ability to maintain wheat availability will therefore depend on importers continuing to switch origins when necessary and on the government keeping alternative supply channels open. The current official assessment is that the system is functioning well, with no reported interruption to wheat supplies.
