Tuesday, 15 September 2015


The Ministry of Trade was optimistic that world’s market opportunity for agro business was still wide open. This was an opportunity to grab for Indonesia’s agriculture industry to market horticulture products like vegetables ad fruits. The export market for agricultural products was low through 2014 as global economy slowed down and some buyer countries like China, Japan and some European states reduced their order. By 2015 there was growing confidence among domestic businesspeople that Indonesian agro-business commodities would sell well.

The Director General of Domestic Trading of the Ministry of Trade Srie Agustina stated in Jakarta on Monday (15.6) that there was growing demand for Indonesian fruits and vegetables although not sizable by volume. Srie stated that for the first 3 months of this year Indonesia exported 290,300 tons of fruits and 13.200 tons of vegetables. Export of both commodities was posted to increase against the first quarter of last year. Through January-March 2014 Indonesia exported 222,000 tons of fruits and 7,9000 tons of vegetables.

Therefore she said now farmers should no only step up production by output, but also by quality and build their own brand image. Beside export, the domestic market for horticulture products was not less promising. The upper-middle segment should be the target market of farmers.

Srie mentioned that export of fruits and vegetables increased by 42.02% and 72.43% respectively in Q-1 of this year against same period of 2014 (y o y). Over a period of 5 years (2010-2014) the trend of increase was 13.20% for fruits and 2.8% for vegetables while the trend of growth by volume was 0,52%.

Although export tend to increase, Srie admitted that Indonesia imported fruits and vegetables more than exporting them. Still srie was optimistic that the gap between import and export could be minimized. Data of the Ministry of trade had it that increase was evident in both import and export. By volume, import of horticulture products rose by around 9% to become 1.31 million tons and by value the increase was around 9% to become USD 1.42 billion against that of 2013.

Somehow to look at data of Q – 1 of this year, import of fruits and vegetables was seen to decline. Apparently import of fruits and vegetables in Q-1 of 2015 was 269,000 tons or down by 29.2% of the same period the year before. In terms of value, in Q-1 of this year import of horticulture products was posted at USD 250,6 million or down by around 28.8% of the same period at USD352,1 million.

The fruits and vegetable being imported were among others apple, lemon, grapes, garlics and beans among others from China, the USA and Thailand. The exported commodities were bananas, manggistan, cabbage and some beans which were exported to among others Pakistan, Vietnam, China, the Philippines and Singapore. (SS)

Business News - June 19, 2015

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