5 Reasons Why You Should Look at Indonesia as a B2B Agriculture Marketplace

01 Nov 2021

By Nurfitriyani Barokah

Indonesia is the Next Big B2B Agriculture Marketplace. Indonesia has a huge potential to become the next big Business to Business (B2B) agriculture marketplace. However, there are some hurdles that need to be overcome before it can become bigger than the US or China. Indonesian's government has implemented many policies supporting agribusiness industries and starting new businesses in order to push entrepreneurship.
 
There are about 270 million people in Indonesia, who speak over 740 different languages and dialects which makes it difficult for them to communicate with each other. This also makes it hard for foreign companies entering the market due to language barriers.
 
Indonesia has experienced a tremendous growth in rice farmers. This is due to the potential of Indonesian rice and the benefits it offers to the world.
 
In just five years (2016-2020), the Indonesian Plantation Rice Farms grew to account for over 15% of the country's total rice production. This increase in production is attributed to a number of factors such as improved irrigation and fertilization practices that have led to increased yields. A reduction in production costs has also had a positive impact on the industry and what was once considered a niche market has now become competitive on world markets.
 
It is predicted that the global rice market to be worth $50 billion by 2020. Investors have been considering investing in Indonesian plantations because they can get returns of up to 30% from their investment.
 
In the last few years, Indonesia has been a rising star in the rice production. This is a good opportunity for investors who are looking for a new market to invest in, given that Indonesia is already established with high-quality rice production and low labor costs.
 
5 Reasons to Consider Investing in Indonesian Plantations:
1) Rising global demand for quality rice
2) High-quality rice production across the country
3) Low labor cost and increase of cheaper imports
4) Market proven experience in vertical integration from mills to exports,
5) Modernized infrastructure
 
Indonesian plantations are not just a matter of investing in domestic or foreign plantation, but also where to invest and what kind of company to invest in. The future of Indonesian plantation can be seen as a good investment for those who want to play a long game with good returns.
 
 

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