The growing consumption of food and vegetables has resulted in a spike in demand in recent years for higher quality and healthier food. This data represents the largest growing market sector – the middle and upper class – which includes over 148 million people.
This in turn has encouraged a major import of fruit, as seen through the 36% increase of fresh fruit imports in 2017. Imports reached USD$1.05 billion and up to another 10% (USD$1.2 billion) in 2020 due to local fruit producers failing to meet consumer demand.
According to a report from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), the demand for food in Indonesia is expected to quadruple by 2050 due to extensive economic growth and the country’s high demand for a more diverse lifestyle. This could very well result in a heavy import supply to meet ever-increasing needs, marking a significant market for the future of the importing agriculture industry in Indonesia.
The Importance of Fruits & Vegetables Boosts Demand for Imported Seeds
Well on its way to rise up the ranks on economic growth, the increasing middle-class population now dictates nutritional security and spotless diet plans which sees local farmers cultivating more crops and investing in higher, better quality seeds to improve yield for increased productivity. This sees a need in innovating farm-level farming as an attractive business opportunity to meet demands
A growing issue is that the demand for domestic horticultural products is quickly outpacing the supply, which makes increased imports from neighboring countries inevitable. As the largest market in Southeast Asia, Indonesia successfully imported a volume of 689 metric tons of vegetable seeds in 2019 with a revenue of USD$130 million.
As a solution to this, the government has to rely on importing vegetable seeds from external sources instead of ready-to-consume commodities, which tackles the reliance on imported products. This creates business opportunities for foreigners to establish a commercial entity with an import license to bring in the required seeds.
Importing Fruit and Vegetable Seeds into Indonesia: Getting Plant Quarantine Clearance
A plant quarantine clearance is crucial to protect the agriculture of a country against possible ravages of unwanted plant pests or pathogens should they get introduced. This is why when bringing imported fruit and vegetable seeds into the country, the importer needs to apply for a quarantine inspection, obtain a clearance permit, and register your product to start supplying the seeds to the local farmers.
The following is the procedure for obtaining a Plant Quarantine Clearance.
- Service users apply for a quarantine inspection addressed to the Head of Agriculture Quarantine Department in all International Airports in Indonesia.
- Appointed officials issue a letter of assignment to the Plant Organism Control Officer to carry out administrative checks and health checks.
- The Department then issues an official Letter of Approval based on the recommendation of the Plant Organism Control Officer for further Plant Quarantine Actions.
- Officials then carry out quarantine actions and conduct laboratory tests whenever necessary. This is then followed by a report on the results.
- Report of results is submitted to the Head who then decides further action.
- A Plant Quarantine Release (Phytosanitary Certificate) is issued for the operational service section.
- A receipt of proof is issued to the service user as a measure to show that payment of Non-Tax State Revenue for Plant Quarantine Release is completed.
- The service officers then submit the Quarantine Release Certificate after showing proof of payment.
When applying for said permit, each item will first be sorted according to its risk to the country.
| Low Risk | Medium Risk | High Risk |
Any imported horticultural products are immediately classified in the high-risk position wherein it needs the Phytosanitary Certificate from the country of origin and an entry permit from Indonesia’s Ministry of Agriculture to be processed. The list of seeds are as follows:
| Import of Chrysanthemum Seeds from Japan | Import of Chrysanthemum Seeds from Holland |
| Import of Phalaenopsis Orchid Seeds from China | Import of Phalaenopsis Orchid Seeds from Japan |
| Import of Phalaenopsis Orchid Seeds from Taiwan | Imported Corn Seeds from Thailand |
| Import of Rice Seeds from the Philippines | Imported Broccoli Seeds from Holland |
| Import of Raspberry Seeds from Holland | Import Strawberry Seeds from Holland |
| Import of Lilium Seeds from Holland | Imported Tomato Seeds from the Philippines |
| Import of Phaleonopsis Orchid Seeds from Thailand | Import of Dendrobium Orchid Seeds from Thailand |
How Cekindo Can Help
Overcoming regulatory challenges can sometimes be overwhelmingly confusing if you don’t know how to navigate your way through the sea of paperwork. Being your local representative here in Indonesia, Cekindo has years of experience in existing local relationships with all domestic industries. Not only will we make setting up your company more effortless, but we will also help you avoid pitfalls and carry out the research you may need for effective market strategies.
