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As one of the world' s largest coffee-exporting countries, Indonesia is hoping to increase its market share in China. Coffee consumption in China is rising rapidly opening up many opportunities for local coffee producers in Indonesia. Those opportunities could be presented in the China International Import Expo, where many Indonesian companies are expected to participate. CGTN's Silkina Ahluwalia has more from Jakarta.
Kapal Api has been thriving in Indonesia's coffee industry since 1957. The company began selling cups of coffee on the streets of Surabaya in the 1920s.
Today, Kapal Api has transformed itself into a pioneer in the industry and a major exporter to countries across Asia including the Philippines, Malaysia and China.
STEVEN MERGONOTO CREDIT MARKETING OFFICER, KAPAL API GLOBAL "We started exporting Kapal Api to China around three years ago. We started by exporting instant 3-in-1 coffee, then we also export our premium line which is the Kapal Api Easy Drip. It's a roast and ground coffee. We kind of see which product is suitable for the Chinese market because the Chinese are fairly new coffee-drinker. So we want to know their habit of drinking and which products are suitable. Exports have increased gradually into China. We can see that every year we export more containers per month and we hope to increase more in the next few years."
Kapal Api is one of the companies preparing to showcase their products on the global stage during the China International Import Expo, a major event organized by the Chinese government for local brands like Kapal Api to explore the Chinese market. Twelve Indonesian companies and associations have confirmed their participation in the event.
CIIE is expected to bring together domestic and international buyers from more than 100 countries, which the Indonesian Trade Ministry believes is the appropriate platform for local businesses to promote their products abroad.
SILKINA AHLUWALIA JAKARTA, INDONESIA "China and Indonesia's bilateral trade relationship began decades ago. Today, it covers many industries including infrastructure development and commodities. Earlier this year when Chinese Premier Li Keqiang visited Indonesia, he focused on strengthening trade co-operation, a key factor to economic growth for both countries."
In 2017, China and Indonesia's trade volume reached 48 Billion US dollars. But Indonesia still needs to reduce its 12 billion US Dollars trade deficit with China.
SHINTA KAMDANI, DEPUTY CHAIRPERSON INDONESIAN CHAMBER OF COMMERCE "Indonesia at the moment is very much pushing for export and investment. As part of export, opportunities like this is very important for us in which China is making its first import expo targeted really for exporters of other countries who wants to export to China. So this is where we stand and we want to take this opportunity. We will be bringing quite a few delegations and promoting our products there. This year as we are a guest of honor, we will be receiving privileges in order to really promote our own products."
As coffee quickly gains popularity in China, the industry remains an important one to be promoted at the event. However, CIIE could also boost trade and provide opportunities for companies in various industries including woodcarvings, palm oil and coal. Silkina Ahluwalia, CGTN, Jakarta.