Five Year Deal Boosts Kansas Wheat Exports and Prices
The U.S. wheat industry has received a major boost as Indonesia’s flour milling association APTINDO signed an agreement with U.S. Wheat Associates (USW) to double its wheat purchases from the United States. Under the new Memorandum of Understanding (MOU) signed on July 7, APTINDO committed to buying 1 million metric tons of U.S. wheat annually through 2030.
This deal is especially significant for Kansas wheat farmers, who are major suppliers of Hard Red Winter (HRW) wheat, which is widely exported to Southeast Asia. HRW made up 27% of U.S. wheat exports to Indonesia over the past decade. The increased demand will help support farm prices and emphasize the need for continued investment in wheat quality and research.
Indonesia has averaged 500,000 metric tons of U.S. wheat imports annually over the last five years. In 2024/25 alone, shipments exceeded 792,000 metric tons. Starting in 2025, APTINDO will import a minimum of 800,000 metric tons, increasing to 1 million metric tons annually—equivalent to $250 million in trade value.
The agreement follows changes in sanitary and phytosanitary (SPS) regulations, especially around fumigation and traceability, resolved in June 2025 after 18 months of coordination between USDA and the Indonesia Quarantine Agency (IQA).
As wheat consumption grows in Indonesia—up 22% in the last decade—the country is looking for higher-quality flour sources. U.S. wheat fits this need, and this deal helps secure the U.S. position in a competitive market.
Kansas wheat checkoff investments and USW’s international work helped make this success possible, proving the value of research, quality assurance, and global trade engagement.