Challenges Being a Tropical Fruit Exporter in Indonesia
Indonesia is striving to keep up its pace in the export game for the last four years. Revealed by Statistics Indonesia in 2018, from January to October, Indonesia had spent a total of US$1.03 billion to accommodate for fruit imports. The amount was overwhelming compared to the fruit exports in the same period, which made up $674.05 million. What is the root of the issue? Indonesia is an archipelago country blessed with diverse varieties of exotic fruits and veggies. If there is anything our country can nail down to help its growth, fruit export can definitely make it into the list. So, what has been holding back a tropical fruit exporter in Indonesia from fruition?
Pandemic Blessing for Tropical Fruit Exporter in Indonesia
It has been a while since the pandemic bangs the world. As we are almost at our third year of Covid-19, lifestyle transformation has been a sort of hype affecting people far and wide. They started to realize the importance of mindful eating; to be aware of what substances go into their body. Moreover, they also demonstrate a considerable enthusiasm in consuming more fruits than ever to boost the immune system. In 2021, according to the data provided by the Ministry of Agriculture in Indonesia, there was an increase of about 0.27% out of US$647.24 million the horticultural export as opposed to 2020. Fruit exports alone prevailed at US$488.18 million. Although we are not sure yet if this opportunity might last long, we still need to reassess what the government can do to sustain the tropical fruit exporter in Indonesia, in this regard.
Related reading: Fruit Export and Import Chance between Indonesia and Vietnam
Being a Tropical Fruit Exporter in Indonesia – What Are We Lacking So Far?
The tropical fruit exporter in Indonesia is still lagging behind because one of them is the expensive transportation costs. Indonesia’s counterparts in ASEAN like the Philippines, Vietnam, and Thailand equip land transportation to export. They have contributed to the major exporters for fruits worldwide since they can cut costs. On the other hand, the tropical fruit exporter in Indonesia still depends on air transportation for exports. It is not surprising that there is a vast disparity in terms of transportation costs for exports from Indonesia.
In addition to the transportation issue, Indonesia has a persistent quality difficulty that we need to address for the greater good. In spite of the increase of fruit export starting in 2021 after the signing of MoU between Indonesia and China and other programs to expand the overseas market in the near future, we still need to figure out how to meet the international fruit standards. Indonesia’s fruits also derive from small local farmers and most of the time, they cannot afford the modern farming machinery, great quality fertilizers, and pesticides to support their high-quality fruit production.
Other Ways Government Can Supplement for the Better-Quality Fruit Production in the Long Run
So, what can we do to fill in the gap for Indonesia’s fruit exports? Clearly, our local farmers will need the government to invest in contemporary technology to support farming. Also, Indonesia needs to get the costly transportation and the non-tariff barriers fixed as soon as possible. Instead of taking our fruits to our export destinations by air, our tropical fruit exporter can reach them via dedicated ships. The transportations have to be arranged with a special system. By then, we can store our fruits in a cold environment and they will not be easily rotten. To add, Indonesia will require investment to encourage further research and development and work on our high-quality seed. The farmers also need more training to get an insight on the best farming practices.
In a nutshell, we are positive that we can get through the challenges being a tropical fruit exporter in Indonesia. There is a high chance we can win more overseas markets. This will need a solid collaboration between the local farmers and the government. Indonesia’s lands are rich and have huge potential for farming. All we have to do is given the trust to start and those opportunities to exist. In times like this, won’t it be great if our fruit exports can improve Indonesia’s economic state?
