Indiana soybean checkoff makes strides to boost reach to Indonesian customers 

By Anita Sharkey

In the ever-evolving landscape of global agriculture, the Indiana Soybean Alliance (ISA), the state’s soybean checkoff program, is making strides to expand the reach of Indiana soybeans into new and promising markets.

A recent mission to Indonesia, the world’s fourth-most populous country with more than 280 million people, highlighted the opportunities and challenges of tapping into this market. Indonesia relies heavily on soy protein to meet its dietary needs, with tofu and tempeh being staple foods. Despite this, the country still faces significant issues.

“In Indonesia, where products like tofu and tempeh are vital for meeting protein needs, there is still a 20 percent rate of stunting in children,” said Mark Legan, an ISA director and farmer from Coatesville, Ind. “This presents a unique opportunity for Indiana soybeans to make a significant difference, both economically and nutritionally, in the lives of the Indonesian population.”

ISA has developed strong relationships for providing soy protein in the country. The Indiana delegation met with key players in the Indonesian agricultural sector, including FKS, the largest soybean importer in the country. FKS imports approximately 1.7 million metric tons of soybeans from the United States annually – a significant portion of which comes from Indiana.

The discussions focused on the sustainability of Indiana soybeans and the introduction of a new high-protein soybean variety explicitly developed for use in tempeh, combined with high oleic soybeans. FKS expressed interest in running trials with this new soybean variety, which could lead to an even stronger market presence for Indiana farmers.

Indonesia ripe for growth

The economic landscape in Indonesia is also ripe for growth. With a developing middle class and consistent economic growth of more than 5 percent in recent years, the demand for diverse protein sources is rising. The ISA team explored the potential for expanding meat exports, particularly U.S. pork, which could increase the demand for soybean meal used in livestock feed.

FKS also seeks a meat import license, which could open new avenues for Indiana soybeans through indirect channels. This promising economic growth in Indonesia bodes well for the future of the soybean market. With support from the National Pork Board, the U.S. Meat Export Federation Chair Randy Spronk joined ISA on the trip and explored the potential of the Indonesian market.

Although Indonesia is a predominantly Muslim country, it has a substantial non-Muslim population of 30 million, presenting a significant opportunity for U.S. pork products. The growth potential is evident, as U.S. pork market share in Indonesia surged from 11.5 percent in 2023 to 38.5 percent in 2024, mainly due to reduced supply from the European Union.

Indiana soybean growers have established robust relationships and logistics for distributing soybeans across Indonesia’s numerous islands, positioning them well to support the soy market and the growing demand for U.S. pork.

“I think the opportunity is there for us, and we just need to be present,” Spronk noted. “It’s going to be a long-term growth market in my mind.” This synergy between soy and pork products highlights the expanding opportunities for Indiana farmers in this emerging market.

Free trade agreement interest

In addition to meetings with soybean importers, the delegation engaged with members of the Indonesian business community and the National Chamber of Commerce. These discussions revealed a strong interest in a free trade agreement with the United States, particularly as American businesses seek to diversify their manufacturing away from China.

The Southeast Asian region, with Indonesia at the forefront, offers significant opportunities for U.S. agricultural exports.

This mission represents just one step in a long-term strategy to increase Indiana soybeans’ global presence, bringing value back to Hoosier farmers and contributing to the food security of nations like Indonesia. With a growing population and economy, Indonesia is poised to become a key player in the global agricultural market, and Indiana is ready to meet that demand, offering a promising future for Hoosier farmers.