The world has recovered from the pandemic. This year, our first stop is Indonesia, the world’s largest archipelago nation and a popular tourist destination. It has been some time since our last visit to Indonesia. We are pleased to meet our client/friend in Jakarta, Indonesia.
From April 8 to April 20, we visited the Jakarta offices of most of our clients. Always appreciate the exchange and sharing of our ideas on markets and products, and seek more opportunities to grow together.
Indonesia, A Country With A Thousand Islands
Indonesia is located in Southeast Asia and Oceania between the Indian and Pacific Oceans. It consists of more than 17,000 islands, including Sumatra, Java, and Sulawesi, as well as parts of Borneo and New Guinea, which is where the name Thousand Islands Country comes from.
With a population of about 280 million, Indonesia is the world’s fourth most populous country and the most populous Muslim-majority country. Java is the most populous island in the world, home to more than half of the country’s population.
Indonesia and China have a long history. As early as the early Ming Dynasty, Zheng, reached Java Island on his voyages to the Western seas. And now the Kota Semarang is named after him.
Thanks to its tropical climate, Indonesia is suitable for growing a variety of crops such as rice, corn, and soybeans. Rice (or Paddy in the local language) is the most important crop in Indonesia.
According to Indonesia’s 2023 statistical report, the paddy harvested area in 2022 was 10.61 million hectares, with a 1.87% increase compared to the year 2021.
Another interesting fact is that usually when we think of cocoa we think of Africa. Surprisingly, Indonesia is also famous for cocoa. It is the fourth largest country for cocoa exports. “But now, farmers prefer to grow paddy and corn instead of cocoa, because taking care of the cocoa trees is much harder than growing paddy”, one of our customers suggested.
Herbicides account for the largest proportion of sales among the top players in most of the local markets. Common herbicides such as glyphosate and paraquat are very popular in the local market. However, the market is low this year, as prices for most pesticides have fallen wildly since December. Although the demand is still high, it is difficult for dealers to decide when to purchase since the price keeps dropping.
Fungicides share a relatively small market. Mancozeb perhaps is the top fungicide in terms of sale volumes. Followed by difeconaozle, propiconazole, etc. Fentin acetate is a very special product, which is used to kill the golden apple snail in the paddy field. It is famous and popular with local farmers.
So far there are no competitive molluscicides in the market. Some other molluscicides used in the market include metaldehyde, niclosamide, etc. However, “among all the available products, Fentin is the best for killing snails, with good efficiency” quote from our local farmers. In contrast, the market for insecticides is growing in West Java.
However, predicting trends is always difficult. From last year to now, some areas have experienced unusual rainfall. El Niño is expected to return in 2023, meaning the land will experience a dry season this year.
Heben, As The Exclusive Supplier Of Fentin Acetate In The Market
Heben is the only legal supplier of fentin acetate in the market and supports most of the local companies with this product. Since fentin acetate is a very good product, many companies have entered this market. There are many brands (eg., Bentan, Kresnoid, Bestnoid, etc) in the market, all with very competitive prices.
Specifically, there are mainly two types of products in the market. Fentin Acetate 60% WP is applied to paddy fields while Fentin Acetate 45% WP is used in the fish ponds.
Presumably, the market of fentin acetate will still grow, but it may be at a slow pace.