Transforming the Durian Industry: Exploring Solutions for Production, Distribution, and
Marketing Challenges in Indonesia using Agricultural Technology
ESSAY
EINSTEIN (ECONOMIC INNOVETION ON SCIENTIFIC COMPETITION)2023
SUBMITTED BY:
Atila Alfayathar Nabil Fathin (2602102851/ 2022)
Amadeus Alfons Wijaya (2602060880/2022)
Regina Martha Dwi Ananda (2602108956/2022)
2022/2023
DECLARATION LETTER
1. Team Leader’s Name : Atila Alfayathar Nabil Fathin
University : Binus University
ID Number : 2602102851
2. Member’s name 1 : Amadeus Alfons Wijaya
ID Number :2602060880
3. Member’s name 2 : Regina Martha Dwi Ananda
ID Number : 2602108956
I hereby declare that our paper titled “Transforming the Durian Industry:
Exploring Solutions for Production, Distribution, and Marketing Challenges in
Indonesia using Agricultural Technology” which will be competing in
EINSTEIN (Economics Innovation on Scientific Competition) 2023 is truly our
creative idea and not copied fromany other persons or other team’s work
(published or unpublished) and has not previously won either EINSTEIN or
any other competitions. All statements in this letter are correct and can be
trusted. If our team is provendoing any kind of plagiarism or ever won a
competition using the same product as we used in this competition, we are
ready to be disqualified from this competition.
15 July 2023
Team Leader’s,
(Atila Alfayathar Nabil
Fathin)
BIODATA SHEET
EINSTEIN (ECONOMICS INNOVATION ON SCIENTIFIC COMPETITION)
“The Rise of the Southeast Asian Economy with Manufacturing Industry Technology”.
Title Student
Name of Chairperson
a. Name: Atila Alfayathar Nabil Fathin
b. Student Indentification Number (ID): 2602102851
c. Faculty/Major : Digital Business Innovation
d. University Name: Binus University
e. Address: Candi Sewu No. 8 Street, Mojolangu, Lowokwaru,
Malang City
f. E-mail: [email protected]
g. Mobile Number: 085339352779
Title Student
Member
a. Name : Amadeus Alfons Wijaya
b. Student Indentification Number (ID) : 2602060880
c. Faculty/Major : Digital Business Innovation
d. University Name : Binus University
e. Address : Graha Golf V, Genitri, Pakis, Malang
f. E-mail : [email protected]
g. Mobile Number : 082136421628
Title Student
Member
a. Name: Regina Martha Dwi Ananda
b. Student Indentification Number (ID): 2602108956
c. Faculty/Major: Digital Business Innovation
d. University Name: Bina Nusantara University
e. Address: Jl. Mansion Valley, Genitri, Pakis, Malang
f. E-mail: [email protected]
g. Mobile Number: 081288987868
The sector of agricultural technology, also known as AgTech or agritech,
refers to the application of technology, innovation, and scientific advancements in
agriculture to improve farming practices, increase productivity, and address
challenges in the agricultural industry. It encompasses a wide range of
technologies and solutions that are designed to enhance various aspects of
agricultural processes, from crop cultivation and livestock management to post-
harvest handling and distribution. Agricultural technology leverages
advancements in fields such as biotechnology, data analytics, robotics, remote
sensing, artificial intelligence, and the Internet of Things (IoT) to provide farmers
and other stakeholders with tools and techniques to optimize production, reduce
resource use, minimize environmental impact, and enhance overall efficiency.
The advancement of technology in agriculture helps the development of
all agriculture sectors, including crop-farming. One of the most known products of
the crop-farming sector in Southeast Asia is the Durian fruit. Durian (Durio
zibethinus) is a tropical fruit tree native to Southeast Asia. It is highly prized for
its unique and pungent aroma, creamy texture, and rich flavor. Durian trees are
cultivated for their fruit production, making it an important crop in the region.
Durian cultivation involves various agricultural practices such as planting,
cultivation, fertilization, pest control, and harvesting. Farmers typically grow
durian trees in suitable climates, provide appropriate soil conditions, and
implement management techniques to ensure optimal growth and fruit production.
The fruit is harvested when it reaches maturity and is ready for consumption.
Durian is commercially grown in several countries, including Thailand,
Malaysia, Indonesia, and the Philippines. It plays a significant role in the
agricultural sector and contributes to the local economies of these countries
through domestic consumption and export markets. The cultivation and trade of
durian involve the participation of farmers, agricultural organizations, and other
stakeholders within the crop sector of agriculture.
Durian is a tropical fruit known for its distinctive smell and unique
flavor. Each country in Southeast Asia has its own specialty when it comes to
durian:
• Thailand: Thailand is renowned for its durian, often referred to as the
"King of Fruits." Some popular Thai varieties include Monthong, Chanee,
and Kan Yao. Thai durians are characterized by their creamy texture,
sweet taste, and strong aroma.
• Malaysia: Malaysia is famous for several durian varieties, including
Musang King (Mao Shan Wang), D24, and XO. Malaysian durians are
prized for their rich, bittersweet taste and firm, creamy flesh.
• Indonesia: Indonesia is home to various durian cultivars, such as Montong,
Bawor, and Petruk. Indonesian durians are known for their diverse flavors
and textures, ranging from sweet and custard-like to more fibrous and
savory.
Global demand of durian was estimated to be 1.5 billion kg in 2016, and
in terms of retail value, it was approximately 15 billion USD with the largest
domestic consumers being Indonesia, Thailand, and Malaysia. The current durian
supply is produced 47% by Indonesia, 33% by Thailand, and 19% by Malaysia
(Durian Global Market Report, 2016). The report states that the durian market is
expected to grow as much as 80% by 2030 because of the increasing consumption
rate in both domestic and international markets. It is irrefutable that durian is a
significant economic contributor in South East Asia.
This essay explores the challenges faced in durian production,
distribution, and marketing in Thailand, Malaysia, and Indonesia, three renowned
for their durian cultivation. By analyzing and comparing the industry’s dynamics
in these countries, we can gain valuable insights into the factors contributing to
their varying levels of success.
One significant challenge faced by durian production in Indonesia is its
seasonal nature. Unlike Thailand and Malaysia, where durian cultivation occurs
throughout the year and durian can be found all year round, Indonesia experiences
limited harvest seasons. This seasonality is attributed to the lack of knowledge and
implementation of modern agricultural practices, such as controlled-environment
cultivation, which involves creating optimal growing conditions for durian trees
regardless of external factors such as weather. Techniques like greenhouse
cultivation or shade nets allow farmers to regulate temperature, humidity, and
light, providing a suitable environment for durian cultivation and extending the
production season (Ministry of Agriculture of the Republic of Indonesia, 2020).
In addition to controlled-environment cultivation, proper irrigation
systems are crucial for year-round durian production. The availability of sufficient
water is essential for the growth and development of durian trees, but relying
solely on seasonal rainfall patterns can limit production to specific times of the
year. Implementing efficient irrigation systems, such as drip or micro-sprinklers,
ensures a consistent water supply, enabling durian trees to thrive and produce
fruits beyond traditional seasonal boundaries. Furthermore, high-quality planting
materials, including improved durian varieties and seedlings, are vital for
optimizing production and extending the harvest season. Access to such planting
materials and knowledge about their benefits can contribute to overcoming the
seasonality challenge in durian production in Indonesia.
Another challenge is related to the development and empowerment of the
durian sector, primarily concentrated in rural areas, with limited expansion into
urban markets. This disparity can be attributed to various factors, including
inadequate government support and a lack of infrastructure for durian processing
and storage (Arsyad & Susila, 2019).
For instance, Thailand’s government has been actively involved in durian
production processes to promote Thai fruit’s quality and international reputation.
In 2021, the government of Chanthaburi, the country’s largest durian-growing
region, implemented a new quality inspection program for Thai durians
throughout the province after three durian farms from different countries had been
identified as reportedly having quality issues. Like Thailand, Malaysia also has
dedicated institutions and agencies to oversee the industry’s development,
facilitate research and development (R&D) efforts, and provide technical
assistance to farmers. In contrast, the government’s role in promoting and
supporting the durian sector in Indonesia has been relatively limited. The local
government must still fully advocate for durian-producing areas or durian tourist
villages, like the Desa Wisata Kebun Durian Wonosekar Central Java.
Moreover, Indonesia’s infrastructure for durian processing and storage is
still inadequate. Compared to Thailand and Malaysia, where efficient processing
facilities and cold storage systems are widely available, Indonesia struggles to
meet these standards—with the help of Charoen Pokphand (CP) Group,
Thailand’s durian sector implemented a project to support durian farmers to
upgrade their product quality for three years. Malaysia has also successfully
implemented the cold storage system to prolong the shelf life of fresh produce
after harvesting. It is essential to highlight that the absence of a robust cold chain
system can limit the ability to transport durian to distant markets, hindering
distribution and export potential (Hadi, 2017).
To address the challenges faced in durian production, distribution, and
marketing in Indonesia, several solutions can be considered. Building a strong and
modern ecosystem for durian manufacturing in Indonesia through the
implementation of modern agricultural practices, such as controlled-environment
cultivation, greenhouse cultivation, or shade nets, can help extend the durian
production season by creating optimal growing conditions regardless of external
factors like weather. Providing support and resources for farmers to implement
these practices can significantly improve year-round production.
Increasing government support to enhance durian production and
advancing technology implementation in the durian industry are also crucial. The
role of an application as a technological advancement for this industry is
important in solving the aforementioned problems. Implementing an application
can be a valuable tool in addressing these challenges. The following are potential
features that could be included in the app:
- Season tracker for durians: This feature would provide information on the
durian harvest seasons in different regions of Indonesia. It could include
data on the timing of each season, expected yield, and the quality of
durians during specific periods. Farmers and traders can use this
information to plan their cultivation and marketing activities accordingly.
- Online marketplace: Create an app-based marketplace for durians,
connecting farmers and traders directly with buyers, facilitating smoother
transactions and expanding their customer base.
- Community and forums: Include a community section for durian farmers,
experts, and enthusiasts to share knowledge, ask questions, and participate
in discussions on cultivation, pest management, and marketing strategies.
- Events and training programs: Feature a calendar of durian-related
workshops, seminars, and training programs to keep users updated and
enhance their skills in durian cultivation and marketing.
- Modern cultivation techniques: Provide comprehensive guides and
tutorials on modern agricultural practices, such as controlled-environment
cultivation, irrigation systems, and pest management, to help farmers
improve their yields.
- Expert consultation: Integrate a feature allowing farmers to seek
personalized advice from agricultural experts on durian cultivation
challenges or concerns.
- Value-added services: Offer services like weather forecasts, market trends,
logistics information, and financial resources tailored to durian farmers,
including specific loans or grants for the durian industry.
By implementing these solutions and incorporating these features into an
application will will be develope good ecosystem and the future of durians in
Indonesia can be enhanced. This will contribute to improving durian production in
Southeast Asia and further stimulate the region's economic growth, as durian
plays an important role in its economy.
References
Arsyad, A., & Susila, I. P. A. (2019). Analyzing Factors Affecting the
Competitive Advantage of Durian Agribusiness in Medan, North Sumatra,
Indonesia. IOP Conference Series: Earth and Environmental Science,
368(1), 012083.
Bangkok Post. (2020, September 16). China demand spiking for Thai durian.
Bangkok Post. Retrieved from
https://www.bangkokpost.com/business/1958175/china-demand-spiking-
for-thai-durian
Hadi, P. (2017). An Analysis of Durian Export Potentials from Indonesia to
China. International Journal of Economics, Commerce, and Management,
5(7), 173-182.
Ministry of Agriculture of the Republic of Indonesia. (2020). Indonesian
Agriculture Outlook 2020. https://www.itfnet.org/v1/2021/04/thailand-
durian-quality-inspection-program-begins/
National Institute of Food and Agriculture. (n.d.). Agriculture technology.
https://www.nifa.usda.gov/topics/agriculture-technology
Plantations International. (2016). Durian market report.
https://www.plantationsinternational.com/docs/durian-market.pdf
Sanusi Putri, R. (2023, April 8). Kementan: Indonesia Punya Jenis Durian
Terbanyak, Tapi Ekspor Masih Kalah Jauh dari Vietnam dan Malaysia.
Tempo Bisnis. Retrieved on July 15, 2023, from.
https://bisnis.tempo.co/read/1712741/kementan-indonesia-punya-jenis-
durian-terbanyak-tapi-ekspor-masih-kalah-jauh-dari-vietnam-dan-malaysia
Seputarmania. (2022, December 29). Program Desa Wisata Kebun Durian
Wonosekar Perlu Adanya Dukungan Pemerintah Daerah. Seputar Muria.
Retrieved from https://www.seputarmuria.com/program-desa-wisata-
kebun-durian-wonosekar-perlu-adanya-dukungan-pemerintah-daerah/
Tridge. (n.d.). Durian export intelligence. Retrieved from
https://www.tridge.com/intelligences/durian/export
