The Potential of Banten Orchids for Global Expansion

moon orchid cultivation facility in South Tangerang with a semi-closed environment and a monthly production capacity of approximately 60,000 pots. Source: personal photo

Indonesia boasts a remarkable biodiversity, including a wealth of floral treasures. Among these, orchids, particularly cut orchids, hold significant economic promise. Indonesian orchids exhibit an astonishing diversity in shape, size, color, and pattern, with new varieties continually emerging every year.

Cut orchid production in Indonesia has become a burgeoning industry, driven by robust domestic and international demand. The inherent beauty, uniqueness and accessibility of orchids make them a popular choice for diverse occasions, including religious ceremonies, decorative purposes, and as thoughtful gifts.

Beyond economic benefits, cut orchid production serves as a vital platform for showcasing Indonesia's rich flora on the global stage. An estimated 5,000 orchid species varieties are distributed across the Indonesian archipelago, from Sumatra to Papua. However, cut orchid production varies significantly across regions due to diverse geographical and climatic conditions, which influence the types of orchids that can be cultivated and the quality of their production.

Based on official data released by the Central Statistics Agency (BPS), Banten Province emerged as the leading producer of cut orchids in 2023, with an impressive output of 1.2 million stems. This significantly surpasses production in other provinces, such as West Java (383,441 stems) and East Java (362,478 stems). Banten's strategic location, its proximity to major markets like Jakarta, and its favorable geographical conditions contribute to its orchid production dominance.

The global orchid market is projected to reach USD 302.5 million by 2031, exhibiting a compound annual growth rate of 4%. North America commands the largest market share, followed by Europe (30%, USD 90.75 million) and the Asia Pacific region (23%, USD 69.58 million). In 2023, based on the data released by BPS, Indonesian orchid exports reached 47.19 thousand tons. Notably, Banten accounted for a substantial 47.8% of national cut orchid production.

To capitalize on the potential of Banten orchids in the global market, career diplomats from the 77th Foreign Service Staff School (Sesdilu) collaborated with the Banten Provincial Agricultural Service to explore market entry into Hong Kong and the European Union. This collaboration arose from Sesdilu's training program, which included fieldwork in Banten Province.

It is hoped that with the visits and activities and promotion of Banten Orchids carried out by the Sesdilu training participants, business actors and orchid business organizations can be facilitated in promoting and at the same time driving Indonesian economic diplomacy. Furthermore, the Sesdilu participants collaborated with Banten Province held a workshop related to the potential of Banten orchids.

The workshop brought together key stakeholders, including orchid industry players in Banten, representatives from the Banten Provincial Government, and the Indonesian Embassies in The Hague and Consulate General of Indonesia in Hong Kong (represented by their respective Trade Attaché and Trade Consul). Participants received valuable insights into practical trade aspects and the latest developments in floriculture policy.

During the workshop, the Trade Attaché of the Indonesian Embassy in The Hague emphasized that Indonesia, as a major producer of orchids, possesses significant potential to expand its market share in Europe, particularly in the Netherlands.

Renowned as a global hub for flower trading, the Netherlands boasts a robust infrastructure supporting the distribution of cut flowers. The presentation highlighted that the Netherlands ranks as the third-largest importer of cut flowers worldwide, with import value reaching $907 million in 2022. Furthermore, it holds the position of the world's largest exporter of cut flowers, achieving an export value of $4.04 billion in the same year.

This capacity-building initiative effectively introduced business actors to the specific demands of the Hong Kong and European Union markets. While immediate export may not be feasible, the workshop provided a valuable platform for fostering dialogue among stakeholders and exploring avenues for future collaboration, such as participation in international exhibitions.(MR)