Indonesia is positioning itself for a strategic leap in agricultural exports by targeting direct access to China’s massive consumer market. With durian, chicken, and eggs at the forefront, the move aims to bypass intermediary countries and capture greater profit margins. As global food demand rises, Indonesia’s push for direct trade reflects a broader ambition to elevate its agribusiness competitiveness.
Key Facts & Background
- Deputy Minister of Agriculture Sudaryono announced Indonesia’s intent to export durian, chicken, and eggs directly to China.
- The initiative was discussed during a bilateral meeting with China’s Deputy Minister of Agriculture.
- Currently, Indonesian durians are exported to Thailand or Malaysia before being re-exported to China, yielding only 10% profit margins.
- Direct export to China could raise margins to 30%, according to Sudaryono.
- Indonesia has achieved self-sufficiency in chicken and egg production, with surplus supply available for export.
- Sudaryono emphasized Indonesia’s readiness to compete globally with fresh, high-quality agricultural products.
- In 2024, Indonesia exported 600 tons of durian worth USD 1.8 million, primarily to Thailand and Hong Kong.
- China imported 15.6 billion kilograms of durian in 2024, a record high, valued at nearly USD 7 billion—up 9.4% from the previous year.
- The Ministry of Agriculture aims to expand market access and reduce reliance on intermediary trade routes.
Strategic Insights
Indonesia’s pursuit of direct agricultural exports to China represents a calculated shift toward value chain optimization and trade sovereignty. By eliminating intermediary countries in the durian trade, Indonesia stands to significantly increase its profit margins, strengthen its brand identity, and enhance traceability—key factors in modern agribusiness. This strategy not only improves economic returns for farmers and exporters but also aligns with broader national goals of food security and export diversification.
The emphasis on durian, chicken, and eggs reflects Indonesia’s growing confidence in its agricultural capacity. Achieving self-sufficiency in poultry and egg production marks a milestone in domestic food resilience, and surplus supply opens the door to regional and global markets. China’s insatiable demand for tropical fruits and protein-rich foods presents a lucrative opportunity, especially as consumers increasingly prioritize freshness, safety, and origin transparency.
From a geopolitical standpoint, direct export agreements with China could deepen bilateral agricultural cooperation and reduce Indonesia’s dependency on third-party trade facilitators. This move may also encourage infrastructure upgrades, such as cold chain logistics and digital traceability systems, to meet China’s stringent import standards. In turn, these improvements could benefit Indonesia’s entire export ecosystem, making it more competitive across multiple commodities.