Indonesia has long relied on imports to meet over 80% of its garlic demand, with China accounting for more than 98% of its import share. Previously, Indonesia's import quota system, due to weak oversight, led to monopolization by a few companies and rampant market irregularities. This resulted in state losses of 45 trillion Indonesian rupiah, drove up garlic prices, and undermined market fairness.
To address this, the Indonesian government is considering replacing the quota system with tariffs. This aims to break monopolies, stabilize prices, and increase tax revenue. Should this policy be implemented, Chinese garlic exporters—leveraging geographical, industrial, and supply chain advantages—are poised to expand their market share in Indonesia.
Chinese garlic exports saw year-on-year growth of 6.0% in volume and 9.8% in value during January-April 2025. The potential opening of the Indonesian market could provide new momentum for this export growth.
