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BUSINESS PROSPECTS for TROPICAL FRUITS in INDONESIA

Syafrida Manuwoto
Faculty of > Syafrida Manuwoto
Faculty of Agriculture,
Bogor Agriculture University,
Jalan Pajajaran, Bogor 16143
INDONESIA
Telephone: 62-251-326429; 328799 Fax: 312032 Email: pertaipb@indo.net.id

WHY DOES INDONESIA MERIT BUSINESS ATTENTION ?

1. High Internal Confidence
2. High External Confidence
3. Other

A.

1. Its average economic growth: 7.0%. over the last 20 years; 7.8% in 1996.
2. Income per capita rising from less than US $100 in 1970 to more than $1000 in 1996.
3. More than twenty million people have incomes higher than US $10,000.

B.

1. Better ranking of Indonesia's global competitiveness (World Economic Forum, 1997).
2. Indonesia: 1995 : 30^th; 1997 : 16^th
3. Indonesia will be one of the world's 20 largest-economies in 2005 (World Bank, 1997).

C.

1. Indonesia is the world's fourth most populous country:

• 1997 200 million
• 2010 240 million
• 2015 254 million

2. Located in the world's fastest growing Asia Pacific area with many identified growth areas:

IMSGT:	Indonesia, Malaysia, Singapore, Growth Triangle
IMTGT:	Indonesia, Malaysia, Thailand, Growth Triangle
BIMPEAGA:	Brunei, Indonesia,land, Growth Triangle
BIMPEAGA:	Brunei, Indonesia, Philippines, East Asia Growth Area
AIDA:	Australia, Indonesia Development Agriculture

WHY DO TROPICAL FRUITS ?

• Highly diversify
• Exotic
• Unique taste
• High Nutritional Vague
• Multi uses
• Various fruit types have not been optimally exploited
  
  
  

Tropical Fruit Nutritional information

(important composition per 100 g)

1.Banana	310	18	300
2.Durion	23	104	140
3.Guava	153	84	60
4.Mango	21	86	-
5.Mangostene	5	38	-
6.Lanalum	13	34	-
7.Papava	71	71	34	1160
8.Pineapple	270	62	40
9.Pomelo	75	15	200
10.Rambutan	39	55	-
11.Sawo	7	54	130
12.Starfruit	26	7	155

Tropical Fruit Uses:

Fresh Consumption :

• whole fresh
• fresh fruit salad
  
  

Processed Product:

• candy
• chip
• crack
• canned puree
• dried dehydrated
• fruit canned in syrup
• jam
• jelly
• powdered
  
  

Pharmaceutical & Industrial :

• papain
• other to be explored
  
  
  

THE DEVELOPMENT OF TROPICAL FRUITS IN INDONESIA?

1. The Indonesian Tropical Fruit Agribusiness has grown steadily

• Production has shown substantial increase
• The total (vals grown steadily
  • Production has shown substantial increase
  • The total (value) of fresh fruit exports increased
  • Processed fruits also contribute to exports

  2. Indonesia's Projected Fruit Demand 1995-2005
  

  Year	Fruit demand (MT)
  1995	6
  2000	8
  2005	10
  2010	14
  2015	20

  
  
  

  3. Strong Political Will of the Government of Indonesia

  • Its Second 25 Year Development Plan emphasises the importance of horticulture (incl. fruits) development through agribusiness and agroindustry approach.
  • Indonesia Investment Coordinating Board has identified agribusiness-agroindustry as a key sector for investment.
  • Indonesia has given the push through strategic national concerted R&D program.
    

  4. Rich Natural Resources

  • Indonesia: consists of over 17,000 islands stretching across 1,770 km N-S and 15,152 km E-W.
  • Has a wide range of environments, ranging from low- to high-lands, wet and dry tropical regions.
  • Has tremendous biodiversity, hundreds of species and varieties, providing opportunities for custity, hundreds of species and varieties, providing opportunities for customer specific variety.
  • Environment diversity & biodiversity provide year-round harvesting
    
    
    

  AN OVERVIEW OF CURRENT FRUIT SITUATION
  

  1. The fruit industry is still characterised as a smallholder traditional enterprise.
  

  2. Low capital and technology input in the agribusiness system

  • Unselected seedling material
  • poor cultural practices
    - land cultivation/preparation
    - fertilisation practices
    - weeding
    - IPM
    - irrigation
  • poor post harvest, marketing and processing practices
  • poor management practices.

  3. The Government of Indonesia for the last five years has put more effort into programmes for developing the fruit industry, a reflection of increased fruit productivity, which rose from 7.5 tonne/ha in 1988 to 13.5 tonne/ha in 1995. Nevertheless, the increase of productivity was relatively low compared to fruit yield in other countries.
  

  4. It is imperative to find solutions to the above situation ranging from production, postharvest, handling, processing and marketing.
  

  5. With the strong political will of the Government of Indonesia, complemented by the active participation of the private sector, the prospects for fruit agribusiness in Indonesia seem bright in the future.
  
  

  FRUIT DEVELOPMENT PROGRAM
  

  To Promote A Sus future.
  
  

  FRUIT DEVELOPMENT PROGRAM
  

  To Promote A Sustainable, Viable Fruit Industry:
  

  1. Encourage large-scale and commercial plantation of selected fruits.
  

  2. Strengthen small-holder farmers by providing:

  • training
  • technologies
  • infrastructures
  • institutional dev.: cooperatives
    
    
    

  BUSINESS PROSPECT FOR TROPICAL FRUITS IN INDONESIA
  

  1. The potential to develop tropical fruits is excellent provided that such development is targeted to an industry based on reliable production, postharvest, processing and marketing.
  2. Tropical fruits are expected to be large export-income earners, so that the development of Indonesia's tropical fruits must be supported by commercial plantations. Thus, opportunities in the development of commercial orchards are tremendous.
  3. Commercial orchards of fruit crops require technology inputs to the production, postharvest, processing and marketing systems. Therefore there are huge opportunities for the supply of fruit production, processing, grading, packaging, cold storage etc. equipment and facilities.
  4. The main constraints to efficient production and quality improvement of fruit on a commercial scale are the knowledge and ability of human resources in adopting modern technology. Indonesia needs technical training. Opportunities exist for other interested countries to conduct courses/training for plant breeding, micrd countries to conduct courses/training for plant breeding, micropropagation, marketing, harvesting, processing etc.
  5. As Indonesia moves towards a market economy, its fruit situation and trade are increasingly dependent on consumer behaviour. Also, the international market requires standardised high quality products. Several areas need collaboration on facilities and human resource development:
  • Quality assurance, standardisation and certification
  • Long distance transport
  • Quarantine development
  • Consumer and Promotion Development.
    
    
    

  CONCLUSION
  

  There are huge opportunities for investment, research collaboration, high tech. equipment, training in the tropical fruits of Indonesia.
  

  Tropical FruitsThe National Assets
  

  Lying astride the equator in South East Asia, Indonesia is one of the tropical countries with great biological diversity. Numerous edible fruit species are distributed over the archipelago, offering wide variation of nutritional quality, taste, flavour, and time of availability. Some of the fruit species have become commercially valuable but not all have been explored.

  Recently, market potential of tropical fruits, both for foreign as well as domestic markets, has increased significantly due to population growth, better living condition and promotion of international tourism. Exports of mangosteen, for on and promotion of international tourism. Exports of mangosteen, for instance, have increased from US $6,580 in 1986 to US $2,484,246, those of mango from US $16,631 (1986) to US $ 938,864 and duku from nil in 1986 to U S $33,437 in 1994.

  To fulfil its economic potential, fruit production should be supported by intensive and integrative research programs covering production systems, propagation methods, cultivar breeding, plant growth regulator application, pest management, postharvest handling, food technology and production economics. Overall cultural information is lacking for most tropical fruit species. Hence, the Centre for Tropical Fruit Studies was established at Bogor Agricultural University (IPB-Bogor). The Centre's mission is to:
  1. Strengthen the organisation and management of national tropical fruit research
  2. Collaborate with private investors
  3. Disseminate research findings.

  The program is supported by the Ministry of Research and Technology as part of a National Strategic Program.
  

  Tropical Fruit Research and Development Program
  

  The Centre's mandate is to coordinate research programs of six fruit species, including manggis(mangosteen, Garcinia mangostana), mangga (mango, Mangifera indica), salak (Salacca zalacca), duku (Lansium domesticum), jeruk besar (Citrus grandis) and jambu (Syzigium malaccensis). The selection of fruit speciesyzigium malaccensis). The selection of fruit species studied is in accordance with:

  a. Priority determined by the Ministry of Agriculture
  b. Economic potential of each species
  c. Possibility of positive impact on improvement of small scale growers and rural nutritional levels
  d. Agricultural sustainability
  e. Preservation of indigenous species

  The R&D program activities represent a mix of short, intermediate and long term objectives, including:
  1. Surveys and germplasm collection, characterisation, selection and evaluation
  2. Development of new varieties through breeding
  3. Development of effective & efficient propagation tools
  4. Harvest and postharvest handling
  5. Food processing
  6. Agri-economic problem-solving and diagnosis
  7. Transfer of information to growers.

  Research programs will combine the strength of conventional approaches with the power of new technology. Coupled with research is education, to prepare qualified scientists, upgrade scientific literature and, at the same time, increase the skill of technicians. Collaboration with various international agencies and experts, particularly those working with tropical woody species, will be anticipated.
  

  Facilities and Staff
  

  The Centre has access to many national facilities at IPB. Experimental Stations at various locations, germplasm collection sites, nurseries, physiology anus locations, germplasm collection sites, nurseries, physiology and cellular and molecular biology laboratories are available.

  Staff include university researchers and teachers from various agencies. Total staff supporting the research program include 5 professors, 22 PhD, 26 masters and 16 BSc holders for a total of 69 people. Their expertise ranges from plant breeding, tropical horticulture and crop physiology to plant biotechnology, biochemistry, food technology, agricultural economics and agricultural sociology
  
  

  Affiliation
  

  Other institutions and companies affiliated with the Centre are:
  1. Faculty of Agriculture, Udayana University, Denpasar-Bali
  2. Faculty of Agriculture, Sriwijaya University, Palembang-South Sumatra
  3. Centre Research Institute for Horticulture, Ministry of Agriculture, Republic of Indonesia
  4. Centre for Agro-Socioeconomics Research, Ministry of Agriculture, Republic of Indonesia
  5. PT Mekar Unggui Sari (Private Company)
  6. PT Inagro (Private Company)
  
  
  

  Presented at IAMA 7th World Congress, Jakarta, Indonesia, 23-27 June 1997
  

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