By DOUG SCHMITZ Iowa Correspondent
ARLINGTON, Va. – Since signing a memorandum of understanding (MOU) with Indonesia last year, U.S. Wheat Associates (USW) officials said they have expanded wheat exports to Indonesia through strategic partnerships and targeted support programs. Currently, Indonesia remains one of the top wheat-importing countries in the world and offers strong growth potential for U.S. agriculture, USW officials said. On July 7, 2025, USW signed a MOU with APTINDO, the Indonesian Flour Milling Association. The deal commits Indonesian millers to purchasing large volumes of U.S. wheat, reaching up to 1 million metric tons annually from 2026 to 2030. This agreement supports both export growth and long-term trade stability, USW officials added. Under the agreement, APTINDO committed to purchase a minimum of 800,000 metric tons of wheat in 2025, and then increase by an additional 25 percent to 1 million metric tons from 2026 through 2030, USW officials said. Joe Sowers, USW vice president in South and Southeast Asia, told Farm World the MOU originated from a request by APTINDO last year, as part of a broader effort to support the Indonesian government’s trade discussions with the Trump Administration. “The agreement with APTINDO sought to formalize a minimum purchase level of U.S. wheat to demonstrate Indonesia’s commitment to balancing trade between the two countries,” he said. “This initiative builds on the long-standing relationship between U.S. Wheat Associates and the Indonesian milling industry.” To ensure success, USW officials said they implemented several programs funded by the Regional Agricultural Promotion Program and the Market Access Program, which focused on educating buyers and improving confidence in U.S. wheat quality. For example, last August, USW led flour mill executives from Indonesia, Vietnam, Thailand and the Philippines on a 1,500-mile road trip from Great Falls, Mont., to Portland, Ore., to wheat farms and export facilities, officials said. The Indonesian participant on the trip reported organizing his first combination cargo of U.S. wheat and soybean meal, purchasing 19,260 metric tons (708,000 bushels) of U.S. soft white and U.S. hard red winter during the trip. Last September, USW sponsored a mill manager to attend the Grain Procurement Management for Importers short course at the Northern Crops Institute in Fargo, N.D., officials said. The seminar introduced the U.S. marketing system and provided training in purchasing strategies. During the seminar, the mill purchased 55,000 metric tons (2.02 million bushels) of U.S. wheat. Last October, USW arranged for Shawn Thiele, milling specialist and associate director of the IGP Institute in Manhattan, Kan., to deliver technical training to mill production staff. Officials said Thiele helped address mill-specific questions on how to optimally use U.S. wheat classes, which resulted in Indonesian milling companies investing in sifter capacity, implementing recommended tempering times, and using recommended best practices for flour blending. Last November, USW delivered comprehensive updates on supply and crop quality during a seminar, which was attended by more than 80 major wheat buyers and millers, officials said. Shahidul Islam, North Dakota State University assistant professor, spring wheat quality, shared research findings on the impact of dark, hard and vitreous (DHV) on flour and baking performance. According to USW, DHV is a crucial quality grading factor used primarily in hard red spring wheat to measure the percentage of kernels that are hard, translucent (vitreous), and high in protein. Following the seminar, officials said an Indonesian milling company reported that the research gave them confidence to lower their DHV specification in purchases of U.S. hard red spring wheat to 55 percent, aligning with crop averages and improving purchase value. By supporting APTINDO through the MOU, Sowers said, “USW reinforced decades of collaboration and trust, further strengthening engagement with the world’s second largest milling wheat import market, and ensuring continued alignment between U.S. wheat producers and Indonesian millers. “The MOU also contributed to increased Indonesian purchases in the 2025-26 marketing year, helping secure Indonesia’s position as the sixth largest export market for U.S. wheat globally,” he added. Following the MOU, he said USW has further intensified its engagement to support increased sales: “This includes enhanced technical assistance, guidance on infrastructure expansion, and workforce development to ensure mills are well equipped to handle U.S. wheat classes efficiently. Indonesia is the world’s fastest-growing market for milling wheat, with imports up 2 million metric tons in the past five years. “Since 2000, the industry has grown from five mills with 5 million metric tons of annual capacity to 30 mills with 15 million metric tons of capacity, with several expansions underway,” he added. “USW efforts are essential to maintaining U.S. wheat’s competitiveness and strengthening long-term partnerships in the market.”
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