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Easier Access for US Dairy Exports to Indonesia

23 October 2012

INDONESIA - In April 2011, Embassy Jakarta’s Office of Agricultural Affairs (OAA) assisted in securing the release of 43 containers of non-fat dry milk (NFDM). The shipments were detained by Indonesian port officials due to widespread confusion regarding import permits and other relevant documents.

Also that month, detainment of six containers of whey, and several other containers of US dairy products was prevented.

These interventions resulted in the release of $3 million of US dairy products and preserved continued access to this growing market.

A lack of clear Ministry of Agriculture (MOA) guidelines, general importer confusion, and Indonesian regulatory misunderstanding by US exporters created the conditions for the aforementioned detainments.

As a result of negotiations between US officials and the MOA, Indonesian MOA guidelines for importing dairy products are clearer and more transparent. This makes it easier for importers to obtain import recommendations from the MOA, which facilitates enhanced commercial opportunities with US suppliers.

Indonesian is the seventh largest market for US dairy products in the world. In CY 2011 the value of US dairy products export to Indonesia set a record high of $210 million, compared to the previous CY 2010 of $159 million.

Since June 2012 over 50 US dairy plants have been actively exporting to Indonesia.

The opportunity for US dairy products in this market remains bright as the local dairy manufacturers are now sourcing more and more of the dairy products ingredients from the United States. Ensuring a smooth trade between the two countries is essential to expand the market for US dairy products.

TheCattleSite News Desk

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