September 14, 2018
Indonesian President Joko Widodo and Australian Prime Minister Scott Morrison recently agreed to a new free trade agreement that paves the way for major grain movement between the two countries. However, full details of the agreement have yet to be confirmed. According to the Australian Financial Review, the agreement will make Australian farmers the sole suppliers of grain to Indonesia. In 2015, Indonesia banned feed grain imports to develop a domestic supply chain. Indonesia already is Australia’s largest market for milling wheat, accounting for approximately USD 924 million a year in sales on exports of more than 4 mt.