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Indonesia Invites China To Invest in Durian Sector

August 11, 2023

According to a news report in the Jakarta Globe, Chinese President Xi Jinping recently met with his Indonesian counterpart Joko Widodo in Chengdu. During the meeting, President Widodo proposed that China should consider investing in durian plantations in Indonesia.

Indonesia’s Chief Investment Minister Luhut Binsar Pandjaitan stated that the Indonesian government hopes that China will invest in cultivating 5,000 hectares of durians in the country. Several potential sites have already been earmarked for this initiative. As outlined in the proposal, 70% of the yield would be directed toward the Chinese market, while Indonesia would maintain possession of the remaining 30%.

Luhut further emphasized that China’s durian imports have surged beyond $4 billion per year. If Indonesia were able to capture a 25–40% share of this market, the value could soar to an astounding $1.5 billion. He also highlighted the interest of the Chinese advisory body, the Development Research Center of the State Council, in the venture. Possible locations that Indonesia could provide for the project include North Sumatra and Sulawesi Island.

In recent years, both the volume and value of durians being imported into China have experienced rapid growth. Southeast Asian countries that cultivate this crop have displayed significant interest in the Chinese market. Nonetheless, China’s sources of durians remain relatively limited at present, as the country currently only permits imports from Thailand, Vietnam, the Philippines and Malaysia.

Indonesia’s durian production is on par with Thailand’s, with a volume of 1.35 million metric tons in 2021, accounting for about one-third of the global total. Surprisingly, its export volume remains comparatively modest at approximately 500,000 metric tons. Durian cultivation in Indonesia is primarily concentrated in provinces such as East Java, West Sumatra, Central Java, North Sumatra and West Java, with these five regions together accounting for 60% of Indonesia’s total durian output.

By 2022, China had become Indonesia’s second-largest source of investment, with a total direct investment of $8.2 billion, second only to Singapore’s $13.3 billion. With the rapid expansion of China’s durian market, Indonesia is actively striving to secure a notable position within this burgeoning sector.

Image: Pixabay

This article was translated from Chinese. Read the original article.

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