Jakarta: Indonesia is gearing up to finalize a trade agreement to export whole durians to China, driven by the fruit’s increasing popularity in the Chinese market. Farmers and investors in Indonesia are optimistic about this new opportunity, anticipating a profitable venture once the deal is in place.
According to Global Voices, Indonesia’s government is actively seeking to attract Chinese investors to the durian sector. In a move to facilitate this, Chief Investment Minister Luhut Binsar Pandjaitan announced the allocation of 5,000 hectares of land in North Sumatra and Sulawesi Island for potential Chinese investors. The proposed investment plan suggests that 70 percent of the durian yield will be exported to China, while the remainder will cater to domestic consumption. The initiative was even discussed by former Indonesian President Joko Widodo and Chinese President Xi Jinping during a dinner meeting in Chengdu.
Despite this investment proposal still pending realization, Indonesia and China have made strides in their trade relations. During Indonesian President Prabowo Subianto’s 2024 state visit to China, the two countries agreed on a protocol for coconut exports, indicating progress in their agricultural trade discussions.
The potential trade agreement is seen as a sweet deal for Indonesia, bolstered by the close diplomatic ties between the two nations. Celebrating the 75th anniversary of their diplomatic relations in 2025, both countries are keen on expanding their trade horizons. Currently, Indonesia only exports durian paste to China, a less profitable venture compared to whole fruit export. The anticipated agreement promises to streamline the supply chain, reducing costs and increasing profits for Indonesian durian growers.
The economic potential of durian cultivation has attracted significant investment interest, particularly from China. Regions like Palu in Central Sulawesi are emerging as key durian production hubs, with investors lining up to capitalize on this growing market. However, experts like Awang Maharijaya of Bogor Agricultural University and Catur Dian Mirzada emphasize the need for Indonesia to develop a more standardized and regulated durian sector to fully tap into the Chinese market.
While the economic prospects are promising, the environmental and social implications of increased durian cultivation cannot be ignored. In Malaysia and Laos, for example, durian plantations have led to deforestation and encroachment on indigenous lands. Experts caution against monoculture plantations that reduce biodiversity and impact local livelihoods. Nonetheless, some believe that with scientific management, durian orchards could contribute positively to environmental conservation.
As Indonesia navigates the complexities of this burgeoning durian trade with China, balancing economic growth with environmental sustainability remains a critical challenge. The coming years will reveal whether this durian boom can yield benefits without compromising the ecological and social fabric of the region.