IDFA Applauds Administration’s Announcement of Framework Agreement with Indonesia

Today, the United States and Indonesia announced an agreement that is expected to result in significantly reduced tariff access for U.S. dairy exports to Indonesia. The agreement also eliminates facility registration requirements that have long hindered U.S. dairy exports to Indonesia.  This announcement represents the greatest opportunity for tariff reductions to Southeast Asia for U.S. dairy exports since the entry into force of U.S. – Korea Free Trade Agreement (KORUS) in 2012. Indonesia is the second largest market for U.S. dairy exports in Southeast Asia and the seventh largest market globally. U.S. dairy exports to Indonesia reached almost $247 million in 2024.The International Dairy Foods Association (IDFA) has been working across a broad coalition of dairy stakeholders to provide input into the negotiations.

“We could not be more enthusiastic and energized about today’s announcement for improved access for U.S. dairy exports to Indonesia,” said Becky Rasdall Vargas, senior vice president of trade and workforce policy at IDFA. “Indonesia is an important trading partner in a region that is critical to U.S. dairy exports, and growing. Today’s announcement represents the largest improvement of access U.S. dairy exporters have seen in the region in over a decade and will be a timely step towards keeping U.S. dairy exporters globally competitive. We express our sincere appreciation to the Administration and the negotiators for achieving this positive outcome for U.S. dairy.”

The U.S. dairy industry exports approximately 18% of U.S. milk production, reaching $8.2 billion last year, the second highest level ever. “With over $8 billion in existing and planned investment across the dairy processing sector, enhanced market access opportunities like today’s announcement with Indonesia will be critical to ensuring the continued stability and growth of the U.S. dairy industry,” said Vargas. “IDFA looks forward to continuing to provide input and assistance to negotiators, on behalf of the U.S. dairy industry, as they discuss additional deals with countries in the weeks and months ahead.”