RRI.CO.ID, Jakarta - The Indonesia-United States trade agreement has raised concerns about the national food import burden, as the commitment to purchase agricultural commodities from the US is expected to raise costs relative to alternative suppliers in the global market.

Researcher at CORE Indonesia, Eliza Mardian, said several US food products are less competitive than those from other countries. “So because of the agreement, we are forced to buy at relatively high prices, no longer considering the competitiveness of the goods,” she said in Jakarta on Wednesday, February 25, 2026, as quoted by Antara.

Under the agreement signed on February 19, Indonesia committed to importing US agricultural products valued at more than USD 4.5 billion. These commodities include soybeans, corn, wheat, cotton, and beef.

The government agreed to purchase at least 3.5 million metric tons (MT) of soybeans per year for five years. Indonesia will also import 3.8 million MT of soybean meal, at least 2 million MT of wheat, and 163,000 MT of cotton annually during the same period.

Eliza presented comparisons of global prices to highlight the differences. Argentine corn is priced at USD 193/MT, while US corn is USD 194/MT. Russian wheat is USD 228/MT, lower than US wheat at USD 233/MT. Argentine soybeans are USD 405/MT, while US soybeans are USD 418/MT.

She urged the government to prepare a strategy to protect the domestic industry. Options include subsidies for local raw materials, such as feed corn for small farmers, to maintain competitiveness and reduce the risk of dependence on imports amid geopolitical dynamics. ***