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Strengthen The Supply Chain, Indonesia Exports 50 Thousand Tons Of Porang To China
Monday, 02 Dec 2024
Indonesia and the People's Republic of China are strengthening their economic cooperation, particularly in the industrial sector. This is being facilitated by the Ministry of Industry, which helped sign a Memorandum of Understanding (MoU) between PT Agrobisnis Komoditas Indonesia (Agrasi) and GuangXi Huapin Agricultural Technology, Co., Ltd. The partnership focuses on developing the value chain for the porang industry.
Under the MoU, PT Agrobisnis Komoditas Indonesia (Agrasi) agreed to export 50,000 tons of porang chips annually to meet the needs of GuangXi Huapin Agricultural Technology, Co., Ltd. The signing of the MoU was witnessed by the Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, and the Deputy Mayor of Guigang, Nong Zhuosong, in Jakarta recently.
"This collaboration between Agrasi and Huapin is not just about selling porang chips; both parties are committed to developing the supply chain and downstream industry for porang in Indonesia," said the Director General of Agro Industry in Jakarta on Friday (November 29).
Putu explained that in the initial phase of this cooperation, 21 small and medium enterprises (SMEs) received support in the form of porang chip drying machines. "The target is to achieve technology transfer and production of glucomannan flour according to industry specifications in Indonesia by 2028," he stated.
Earlier, on January 4, 2024, in Jakarta, both parties signed a contract for the sale of porang chips over six years (2024-2030) for 25,000 tons per year. Then, on November 26, 2024, they agreed to increase the purchase from 25,000 tons to 50,000 tons per year.
"The increase in porang chip exports will also be accompanied by the provision of domestically produced drying machines for SMEs in the porang production centers," Putu added.
According to him, the collaboration between Agrasi and Huapin aims to maintain the price stability of porang raw materials through contract farming, keeping it between Rp4,000 and Rp4,500 per kilogram. This price stability is crucial to encourage farmers to grow porang, ensuring a consistent supply of raw materials.
Furthermore, Putu explained that Agrasi and Huapin are committed to injecting technology in the areas where porang raw materials are sourced. Both parties also pledge to enhance the local workforce's skills in porang processing through various training programs.
"The hope is that by 2030, a 95 percent glukomanan refining industry will be established in Indonesia, making the country a key player in the global glukomanan industry," he added.
Nong Zhuosong, the Deputy Mayor of Guigang, also expressed support for the cooperation between Indonesia and China, hoping that Guigang will become a center for the konjac industry in the future.
