POULTRYINDONESIA, Jakarta — Concerns among national poultry industry players regarding the potential influx of imported chicken leg quarters (CLQ) have resurfaced following shifts in Indonesia–United States trade dynamics. However, the government maintains that its trade policies prioritize the protection of the domestic industry while balancing national export interests. This was stated by the Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, in a written release on Sunday (Feb 22, 2026).

Haryo explained that on April 2, 2025, the U.S. Government unilaterally imposed reciprocal tariffs on countries deemed to cause a U.S. trade deficit. Indonesia was hit with a 32% tariff, based on U.S. data showing a trade deficit with Indonesia of USD 19.3 billion in 2024.

The Indonesian Government views negotiation as a vital step to maintain the competitiveness of national export products and protect the livelihoods of approximately 4–5 million direct workers in labor-intensive industries. Diplomacy was chosen over retaliation, as the latter was seen as potentially causing greater economic damage.

Negotiated Outcomes and the ART Agreement

Through intensive negotiations, the reciprocal tariff was successfully reduced from 32% to 19% on July 15, 2025, as outlined in the Joint Statement on the Framework Agreement on Reciprocal Trade (ART). This commitment was finalized through the signing of the ART Agreement by the Presidents of Indonesia and the United States on February 19, 2026.

The agreement regulates reciprocal tariff rates and provides tariff exemptions for several of Indonesia’s flagship products entering the U.S. market, including:

• Palm Oil

• Cocoa and Coffee

• Rubber and Textiles

To balance foreign trade and meet domestic needs, Indonesia agreed to purchase various U.S. energy commodities, such as metallurgical coal, LPG, crude oil, and refined gasoline. Additionally, Indonesia will purchase aircraft, components, and aviation services to boost the competitiveness of the national and regional aviation industries.

The Poultry Sector: Quotas and Breeding Needs

Regarding the poultry sector, Haryo emphasized that chicken imports from the U.S. are limited and industry-driven.

Currently, Indonesia imports live poultry specifically for Grand Parent Stock (GPS) needs, totaling 580,000 birds with an estimated value of USD 17–20 million. GPS is the primary genetic source for the national breeding industry and cannot yet be produced domestically.

While the import of chicken parts—such as leg quarters, breasts, and thighs—is not strictly prohibited, it remains subject to:

1. Animal health and food safety requirements.

2. Specific domestic demand.

3. Applicable technical regulations.

To support the domestic food processing industry, Indonesia also imports mechanically deboned meat (MDM) for products like sausages, nuggets, and meatballs, with an estimated volume of 120,000–150,000 tons per year.

Safeguards for Domestic Farmers

The government asserts that protecting local farmers remains a top priority. Trade policies are designed to maintain supply balance and price stability rather than sacrifice the domestic industry.

As an anticipatory measure against import surges, the ART Agreement establishes the Council on Trade and Investment. This forum will periodically review the agreement’s implementation, specifically addressing any significant spikes in imports that could disrupt domestic market stability.

The agreement will take effect 90 days after both countries provide written notification that all legal procedures—including consultations and ratification—are complete. Furthermore, the agreement is dynamic and can be evaluated or amended at any time upon written request and mutual consent.

Through these mechanisms, the government ensures that trade liberalization remains monitored and measured to safeguard the sustainability of the domestic poultry industry.

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