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Russia has increased its agricultural exports to Indonesia by $283 million in 2023, with wheat leading the way.
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Russia has increased its agricultural exports to Indonesia by $283 million in 2023, with wheat leading the way.

Russia increased agricultural exports to Indonesia by $283 million in 2023. Wheat supplies resumed, with Russia becoming the second largest supplier after Australia. Indonesia is one of the largest buyers. Plans are underway to increase exports to $650 million by 2030.

1 May 2024 1 May 2024

In 2023, Russia exported agricultural products to Indonesia worth $283 million, which is almost six times more than in 2022. The volume of supplies increased by 22 times and reached over 1.1 million tons, according to the Federal State-Funded Institution "Agroexport" under the Ministry of Agriculture of the Russian Federation.

This growth was driven by wheat exports, which resumed in May 2023 after a two and a half year hiatus. From May to December, Russia shipped 1.06 million tons of wheat to Indonesia worth $257 million.

"Russian wheat supplies to Indonesia stopped in the 2020/21 season when this country began to massively buy wheat from Ukraine," said analysts from the "Rusagrotrans" analytical center.

The quality requirements for the products were the same for all countries, but for some reason, Indonesia stopped considering Russian wheat as an imported commodity.

Thanks to the efforts of Russian authorities in the previous 2022/23 season, Indonesia started buying Russian wheat again and now ranks sixth among importers. Currently, Indonesia purchases both 12.5% and 11.5% protein wheat, and Russia offers the most competitive prices for these grades.

In turn, for Indonesia, Russia has become the second largest wheat supplier after Australia in the current 2023/24 season.

"Indonesia is one of the world's largest wheat importers alongside China and Egypt. The country's needs now range from 10.5 to 11 million tons and continue to grow, while wheat is almost not grown domestically in Indonesia. Russia can successfully compete in the Indonesian market and beyond," analysts believe.

Indonesia is also one of the top three buyers of barley from Russia. During 2023, more than 18 thousand tons of barley were shipped to the Asian country totaling $6.8 million.

According to the forecast of the Federal State-Funded Institution "Agroexport," by 2030, Russia can increase the volume of agricultural product exports to Indonesia to over $650 million.

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