Understanding Tea

Indonesia’s Thriving Tea Trade: Export Strength and Growing Imports

Indonesia, known for its rich tea heritage, stands out as a major player in the global tea trade.

Tea Imports Exports

Indonesia’s Tea Exports

In 2021, Indonesia solidified its position as the 13th largest tea exporter worldwide, with tea exports valued at $101 million. Among Indonesia’s diverse export portfolio, tea ranked as the 242nd most exported product that year. Malaysia emerged as the primary destination for Indonesia’s tea exports, accounting for $12.2 million. Noteworthy destinations also included Russia at $12 million, Australia at $11.1 million, the United States at $7.29 million, and Chinese Taipei at $4.66 million.

Emerging Export Markets

Indonesia experienced notable growth in its tea exports between 2020 and 2021, showcasing its expanding presence in emerging markets. The fastest-growing export markets for Indonesian tea during this period were Thailand, witnessing an impressive increase of $1.1 million, followed by the United Arab Emirates at $647,000 and the Netherlands at $506,000. This growth signifies Indonesia’s ability to cater to evolving global tea preferences and seize emerging market opportunities.

ContinentCountryTrade Value
AfricaAngola58,575
AfricaBotswana158
AfricaEgypt504,374
AfricaGambia70
AfricaKenya135,668
AfricaMorocco52,428
AfricaMauritius1,454
AfricaSenegal46,761
AfricaEswatini661
AfricaSouth Africa2,526
AfricaZambia63
AsiaAfghanistan494,612
AsiaUnited Arab Emirates4,071,568
AsiaBangladesh19,687
AsiaBahrain870
AsiaBrunei238,950
AsiaChina4,138,158
AsiaHong Kong255,735
AsiaIndia1,804,878
AsiaIran516,036
AsiaIsrael86,400
AsiaJapan3,013,097
AsiaKyrgyzstan23,296
AsiaCambodia90,589
AsiaSouth Korea57,502
AsiaKuwait6,263
AsiaSri Lanka129,439
AsiaMacau42,682
AsiaMaldives32,088
AsiaBurma61,588
AsiaMongolia222,566
AsiaMalaysia12,224,649
AsiaNepal4
AsiaPakistan3,178,462
AsiaPhilippines2,633,039
AsiaQatar20
AsiaSaudi Arabia756,581
AsiaSingapore3,915,258
AsiaThailand3,539,410
AsiaTajikistan66,240
AsiaTurkmenistan91,966
AsiaTimor-Leste405,713
AsiaTurkey59,763
AsiaUzbekistan1,096,455
AsiaVietnam4,194,191
AsiaChinese Taipei4,662,826
EuropeAustria412,807
EuropeBelgium35,870
EuropeBosnia and Herzegovina310
EuropeBelarus3,733
EuropeSwitzerland93,755
EuropeCzechia171,476
EuropeGermany3,223,491
EuropeSpain422,699
EuropeFinland174
EuropeFrance54,054
EuropeUnited Kingdom1,454,337
EuropeHungary1,303
EuropeIreland1,792
EuropeIceland803
EuropeItaly36,008
EuropeMoldova830
EuropeNetherlands1,550,740
EuropeNorway11,248
EuropePoland3,842,539
EuropeRomania4,926
EuropeRussia12,009,349
EuropeSlovakia218,510
EuropeSlovenia49
EuropeSweden108,807
EuropeUkraine1,096,158
North AmericaCanada418,280
North AmericaDominican Republic29
North AmericaUnited States7,288,414
OceaniaAustralia11,121,177
OceaniaFiji527,160
OceaniaNew Caledonia199,603
OceaniaNew Zealand2,864,546
OceaniaPapua New Guinea159,718
OceaniaSolomon Islands133,150
OceaniaVanuatu33,371
OceaniaSamoa74,753
South AmericaArgentina1,322
South AmericaBrazil83
South AmericaChile933
South AmericaGuyana15,559
South AmericaPeru342,481
South AmericaSuriname22,897
Table: Where Does Indonesia Export Its Tea (2021)

Tea Imports into Indonesia

In 2021, Indonesia became the 60th largest importer of tea globally, with tea imports valued at $23.4 million. Tea ranked as the 627th most imported product in Indonesia during the same year. Indonesia primarily sourced its tea imports from Vietnam, accounting for a significant share of $6.52 million. Other notable import sources included Kenya at $5.32 million, Thailand at $2.31 million, Japan at $1.85 million, and China at $1.43 million.

Emerging Import Markets

Indonesia’s tea imports experienced notable growth between 2020 and 2021, indicating diversification in import sources. The fastest-growing import markets for tea in Indonesia during this period were Japan, exhibiting a remarkable increase of $447,000, followed by the United States at $262,000 and the United Arab Emirates at $129,000. These figures highlight Indonesia’s expanding tea industry and its efforts to diversify sources to meet domestic and international demand.

Tariff Landscape

In 2018, the average tariff imposed by Indonesia on imported tea stood at 11.8%. Among the countries with the highest import tariffs for tea were Angola, Burundi, Benin, Burkina Faso, and Botswana, all subject to a Most Favored Nation duty rate treatment of 12.5%. This tariff landscape indicates Indonesia’s commitment to regulating its tea imports while supporting domestic tea production and trade.

ContinentCountryTrade Value
AfricaAngola2
AfricaCote d’Ivoire19
AfricaEgypt98
AfricaKenya5,317,739
AfricaMorocco2
AfricaNigeria14
AfricaRwanda65,826
AfricaTanzania42,464
AfricaUganda15
AfricaSouth Africa2,294
AsiaUnited Arab Emirates157,942
AsiaBhutan96
AsiaChina1,431,883
AsiaHong Kong1,060
AsiaIndia740,520
AsiaJapan1,848,281
AsiaSouth Korea52,831
AsiaSri Lanka1,277,323
AsiaBurma16
AsiaMalaysia561,767
AsiaNepal3
AsiaPhilippines577
AsiaSaudi Arabia4,131
AsiaSingapore861,589
AsiaThailand2,312,094
AsiaTurkey3,775
AsiaVietnam6,518,913
AsiaChinese Taipei1,376,841
EuropeBelgium14
EuropeSwitzerland14,146
EuropeCzechia672
EuropeGermany78,766
EuropeFinland7
EuropeFrance43,756
EuropeUnited Kingdom48,832
EuropeGreece1,672
EuropeHungary99
EuropeItaly18
EuropeNetherlands19
EuropePoland328,724
EuropeSlovakia69
North AmericaCanada1,445
North AmericaUnited States293,840
OceaniaAustralia635
OceaniaPapua New Guinea5
South AmericaArgentina180
South AmericaBrazil31
Table: Where Does Indonesia Import Its Tea (2021)

Vietnam Tea: A Popular and Reliable Choice for Indonesia’s Imports

Vietnam tea has consistently been a popular and trustworthy choice for Indonesia, thanks to its premium quality and competitive pricing. In 2021, Indonesia imported tea from Vietnam with a total value of $6,518,913, marking a 6% increase compared to the previous year. Vietnam holds a significant position as an important supplier of tea to Indonesia, catering to its tea requirements effectively.

Conclusion

Indonesia’s thriving tea trade demonstrates its significance as both an exporter and importer in the global market. With its impressive tea exports to Malaysia, Russia, Australia, and other destinations, Indonesia continues to solidify its position as a major player. Meanwhile, its growing tea imports from Vietnam, Kenya, and other countries highlight its willingness to diversify its tea sources to meet domestic demand and cater to evolving consumer preferences.

As Indonesia’s tea industry continues to flourish, fostering relationships with existing trade partners and exploring emerging markets will be key to sustaining growth. Monitoring trends in tea consumption, promoting sustainability practices, and optimizing tariff policies will enable Indonesia to adapt to changing market dynamics and maintain its position as a prominent tea-producing nation. By embracing innovation and investing in quality, Indonesia can further enhance its tea industry’s competitiveness and contribute to the global tea culture enjoyed by consumers worldwide.

Data: BACI

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