Indonesia Aims to Capitalize on Thailand’s Durian Woes in Bid for Chinese Market

Indonesia is seizing a rare opportunity to break into the lucrative Chinese durian market following a major setback for Thailand, the world’s leading exporter of the fruit. Earlier this year, China rejected over 100 containers of Thai durian due to contamination with a carcinogenic dye, “Basic Yellow 2” (BY2), prompting Beijing to blacklist several Thai exporters. This development has opened a window for Indonesia to challenge Thailand’s dominance in the global trade of the “King of Fruit,” though significant hurdles remain.

Liferdi Lukman, director of floriculture at the Indonesian Agriculture Ministry’s Horticulture Directorate General, expressed optimism about the country’s prospects. “This will create an opportunity for Indonesia to supply durian directly to China,” he told The Jakarta Post on Thursday. Negotiations are already underway, with an agreement on frozen durian shipments expected next month. Additionally, China’s customs authority, GACC, is set to audit plantations and packing houses in Central Sulawesi by the end of February 2025 to establish a protocol for fresh durian exports.

A Growing Market and Indonesia’s Potential

China is the world’s largest importer of durian, a fruit native to Southeast Asia and often associated with Borneo, regarded as its birthplace. The Chinese market’s appetite for durian has surged in recent years, driven by the fruit’s unique taste and cultural significance. Thailand has historically dominated this trade, producing 63% of the world’s durian supply in 2023. Last year, Thailand exported 859,183 tonnes of durian to China, though this marked a 13% decline from the 991,577 tonnes shipped in 2023, with the value dropping from US$4.12 billion to $3.75 billion, according to the Bangkok Post.

Indonesia, while a smaller player, is not insignificant. In 2023, the country produced 1.83 million tonnes of durian, reflecting its growing importance in the regional market. Central Sulawesi, in particular, has emerged as a key hub for cultivation, including the Montong variety—a type of durian prized in China for its large, yellow flesh and sweet taste. Yet, despite this potential, Indonesia faces stiff competition and logistical challenges that could hinder its ambitions.

Logistical and Competitive Challenges

One of the primary obstacles for Indonesia is geography. “Indonesia is quite far from China,” noted Sigit Puruwanto, a durian expert and head of the Durian Traveler Indonesia community. Durian has a short shelf life, typically ripening within five days, which gives countries closer to China a significant advantage. Vietnam, for instance, benefits from its proximity and has rapidly positioned itself as a formidable competitor. “Vietnam is much closer to China, making it easier to export fresh durian,” Sigit explained.

Beyond location, Vietnam also has an edge in cultivating the Montong variant, originally from Thailand but now widely grown in Vietnam. Described by Sigit as the “best and most acceptable” durian in the Chinese market, Montong’s popularity underscores Vietnam’s growing influence in the trade. Indonesia, while capable of producing Montong in regions like Central Sulawesi, struggles to match Vietnam’s scale and efficiency.

Domestically, Indonesia’s agricultural priorities add another layer of complexity. Sigit suggested that the government’s focus remains on staple crops like rice and sugar, rather than niche exports like durian. “Maybe in the coming years, we will see Indonesia produce a wider variety of durian, but right now, most of the government programs are focused on rice and sugar,” he said. Without targeted investments in infrastructure and logistics, Indonesia risks missing out on the durian boom.

Thailand’s Stumble: A Temporary Setback?

Thailand’s recent troubles with contaminated exports have undoubtedly shaken its position, but it remains a titan in the durian trade. The rejection of over 100 containers by China due to BY2 contamination—a dye deemed carcinogenic—has led to reputational damage and financial losses for Thai exporters. Several have been blacklisted by Beijing, creating a gap in the market that Indonesia and Vietnam are eager to fill.

However, experts caution that Thailand’s dominance is unlikely to be permanently disrupted. Its established supply chains, proximity to China, and expertise in durian cultivation give it a resilience that competitors like Indonesia must work hard to match. If Thailand addresses the contamination issues and rebuilds trust with Chinese authorities, it could quickly reclaim lost ground.

For Indonesia, the current situation presents a critical test. Success in penetrating the Chinese market could elevate its agricultural sector and diversify its export portfolio, reducing reliance on traditional commodities. But this will require not just overcoming logistical barriers but also aligning government policies to support durian farmers and exporters. Investments in cold storage, faster shipping routes, and quality control measures will be essential to ensure that Indonesian durian meets China’s stringent import standards.

Economic Implications for Indonesia

The potential economic benefits of capturing even a fraction of China’s durian market are substantial. With Thailand’s exports to China valued at $3.75 billion in 2024, even a modest share could translate into hundreds of millions of dollars for Indonesia. This would provide a significant boost to rural economies, particularly in regions like Central Sulawesi, where durian cultivation is already a vital source of income.

Moreover, success in the durian trade could have broader implications for Indonesia’s agricultural exports. Establishing a foothold in China’s durian market may pave the way for other tropical fruits, strengthening trade ties with Beijing and positioning Indonesia as a key supplier in the region. If negotiations for frozen and fresh durian exports are finalized as planned, this could mark the beginning of a new chapter for Indonesia’s horticulture industry.

Yet, there are risks to consider. Over-reliance on a single market like China could expose Indonesian farmers to volatility, especially given Beijing’s strict regulatory environment. A single contamination scandal, similar to Thailand’s, could undo years of progress. Additionally, competition with Vietnam and Thailand will remain fierce, requiring sustained innovation and quality assurance to maintain any gains.

A Long Road Ahead

Indonesia’s bid to challenge Thailand’s durian dominance is a long-term endeavor, fraught with challenges but also rich with opportunity. The rejection of Thai durian by China has provided a rare opening, and Indonesian officials are moving swiftly to capitalize on it. Audits by Chinese customs authorities later this month will be a crucial step, as will the anticipated agreement on frozen durian shipments.

For now, Thailand and Vietnam remain the dominant forces in the global durian trade, bolstered by proximity, experience, and established market presence. But with the right investments and policy focus, Indonesia could carve out a meaningful share of the market. As Sigit Puruwanto put it, there is growing interest in cultivating durian in regions like Central Sulawesi, and with time, Indonesia’s industry could expand significantly.

The stakes are high, not just for durian farmers but for Indonesia’s broader economic ambitions. Whether the country can turn this moment of opportunity into lasting success remains to be seen, but for now, all eyes are on Jakarta—and the orchards of Sulawesi—as they prepare to take on the “King of Fruit” market.