02:29
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. And Indonesia will be looking for opportunities at the China International Import Expo. CGTN's Silkina Ahluwalia has more from Jakarta.
Indonesia is one of the largest coffee-exporting countries. Local Indonesian coffee has grabbed the world's attention due to its unique flavor. Indonesia isn't the only country where coffee consumption is rising. With the changes in lifestyle and trend, China is also seeing an increase in coffee-drinkers. And that's good news for Indonesia. The country has now become the second biggest coffee exporter to China.
SILKINA AHLUWALIA JAKARTA, INDONESIA "According to research, the value of the coffee industry in China will reach more than 40 billion US dollars by 2020… with the market growing at least 15 percent annually. China produces its own coffee as well, with 95 percent of the country's output coming from Yunnan. But those plantations are not enough to meet the whole country's demand."
Johannes Gunawan is the owner of Ventura coffee. His company recently opened their Chinese headquarters in Shanghai. With the China International Import Expo coming up, local Indonesian coffee producers like Johannes are expected to benefit heavily from the event.
JOHANNES GUNAWAN ADVISOR, INDONESIA COFFEE EXPORTERS ASSOCIATION "I think the exhibition in China usually many buyers will come and it's a very open market for China right now. And it's also an opportunity for Indonesian producers and exporters to offer their coffee. Because as we know that we have coffee from Sumatra all the way to Papua and it has different characteristics so the market is big with the population that is so huge. I think this kind of exhibition is very promising for Indonesian producers."
Johannes has seen the demand for Indonesian coffee beans increase in China. The exports used to mainly focus on ready-to-drink coffee beverages but now the demand has shifted to pure green coffee beans, which means China's processing and roasting industries have grown as well. Aside from coffee, the expo could also boost trade in various industries between the two countries including rubber, palm oil and coal. Silkina Ahluwalia, CGTN, Jakarta.