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September 4, 2025

From tariffs to opportunity: Indonesia’s agricultural export pivot to Australia

By Robert Budianto, Agrifood, Agriculture, Agri-tech Adviser, Katalis

Mangoes, bananas, maybe oranges. That’s what comes to mind for most people when they think of the fruit trade between Indonesia and Australia. But a new frontier is adding spice to the old relationship: exotic tropical fruits and vegetables.

As an Agricultural, Ag-food and Ag-tech Adviser working to strengthen agricultural ties between our two countries, I’ve witnessed firsthand Australia’s growing appetite, literally and economically, for fruits once considered niche or unfamiliar. Think mangosteen, passionfruit, dragon fruit, salak, okras and bird’s eye chilli, just to name a few.

Australia’s multicultural population is embracing new culinary experiences, fuelling demand for unique flavours and health-conscious options. Asian flavours and food styles are at the forefront of this changing demand, no longer consigned to specialised markets, but now mainstream. Celebrated Indonesian chef William Wongso noted this when he spoke to The Katalis Podcast, calling it the “Asianisation of the Australian palate”.

Indonesian exotic fruits, packed with antioxidants, vitamins, and fibre, are an untapped tropical treasure chest. Like our ASEAN neighbours, Thailand and Malaysia, exotic fruits and vegetables are becoming Indonesia’s secret weapon, giving a competitive edge that’s ripe for the taking. And in today’s volatile global trade landscape, diversifying markets isn’t just smart—it’s essential for resilience, competitiveness, and long-term growth. That’s why seizing opportunities in high-value markets like Australia matters now more than ever.

However, alongside growing demand is Australia’s strong emphasis on food safety, sustainability and traceability. In fact, Australia is one the strictest countries in the world in terms of biosecurity and import protocols. The challenge of exporting delicate fruits, like the bruisable mangosteen, becomes even more complicated when aiming at the Australian market.  

Fruits intended for Australia are often subject to chemical and/or physical processes to remove or sterilise pests, like spider mites and mealybugs, which could threaten local biodiversity. The rigorous processes for dried herbs are a prime example. While these processes protect Australia’s biosecurity, they can unintentionally shorten a product’s shelf life and increase risks for exporters.

While biosecurity protocols, cold chain logistics and import quotas can slow momentum, the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), which Katalis supports, has brought promising progress and surging opportunities for Indonesian agricultural exporters. In particular, the IA-CEPA reduced tariffs to zero for Indonesian agricultural and manufactures exporters to Australia.

As tariffs have become a non-issue, the smart play is to focus on an export market built around processed products such as dry herbs, tea leaves, and freeze-dried and frozen fruits. These tend to be higher value adding in Indonesia and command higher sales prices in Australia.

One exciting example is moringa, a herbal leaf making waves as the next ‘superfood’. Australia imports around USD100 million of herbal leaves per annum (Tridge.com) but very little moringa from Indonesia. With this in mind, our team found an Australian importer willing to try Indonesian moringa, diversifying from usual sources like India and Poland–while Europe may not produce moringa, it has long been a hub for re-exporting agricultural products such as vanilla beans and spices. Fast forward to today, and I am happy to report that a shipment of moringa powder and leaves from Madura Island, East Java made it safely to Coomera, Queensland, in excellent condition. The positive consumer response is proof that this market is not only ready for Indonesian moringa, but hungry for it!

Another surprising success story is frozen durian. Freezers all over Australia are filled with stacks of this iconic fruit, with frozen packages of Musang king durian flesh from Malaysia, frozen whole durians from Thailand and Vietnam, and Filipino Davao-origin durian, which began entering Australia in 2021. But where is Indonesia in this, one of Southeast Asia’s most prolific producers? Sadly, nowhere. At least not yet! Is Indonesian frozen durian banned? Not at all. In fact, Australia’s biosecurity protocols apply equally to frozen durian regardless of origin. It’s simply a matter of timing and seizing opportunities.

Is Australia’s demand for Indonesian durian and moringa big enough to justify investment? I can’t say for sure. However, what I do know is that once a new product reaches the market, the beauty of democracy will take over, and ultimately, consumers will decide which one rises to the top. That’s why getting first mover advantage is so important.

Take, for example, a Mon Thong durian from the fertile, non-touristed slopes of Tabanan in Bali. Its unique terroir attributes set it apart from durians grown in the orchards of Chanthaburi in Thailand. Whether it’s a nuttier flavour, sweeter taste, or changes in the (in)famous durian smell, each place of origin leaves a lingering mark on the fruit that will appeal to different consumers.

Prospects are also bright for Indonesia’s cocoa bean producers. Reflecting our commitment to closer market integration between Indonesia and Australia, Katalis is paving the way for greater bilateral cocoa trade by supporting Indonesia to move cocoa beans up the agricultural value chain. We recently produced a detailed market research report on the bilateral cocoa and chocolate industries, and facilitated a market development visit for industry players and cooperatives to Melbourne, Australia’s home of lovers of both coffee and chocolate.

Of course, there’s always more work to do, but the progress so far is promising. There’s a clear win-win here: Australia gains access to fresh, high-quality tropical fruits and vegetables, while Indonesian farmers tap into a premium export market. Beyond just trade, expanding trade in fruit and vegetables is about sharing vibrant food cultures and strengthening regional resilience, one exotic fruit at a time. Each fruit that crosses borders isn’t just a business transaction, it’s a step towards closer ties and stronger connections.

So, Indonesian durian next, mate?

Robert Budianto is an Agricultural, Ag-food and Ag-tech Adviser with the Indonesia – Australia Comprehensive Economic Partnership Agreement Economic Cooperation Program (IA-CEPA ECP) Katalis.

Our goal is to maximise IA-CEPA benefits for Indonesia and Australia: improved market access, increased two-way trade and investment, and inclusive economic growth in Indonesia.

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© Copyright IA-CEPA ECP Katalis

Our goal is to maximise IA-CEPA benefits for Indonesia and Australia: improved market access, increased two-way trade and investment, and inclusive economic growth in Indonesia.

Subscribe to our newsletter

© Copyright IA-CEPA ECP Katalis

Our goal is to maximise IA-CEPA benefits for Indonesia and Australia: improved market access, increased two-way trade and investment, and inclusive economic growth in Indonesia.

Subscribe to our newsletter

© Copyright IA-CEPA ECP Katalis

Our goal is to maximise IA-CEPA benefits for Indonesia and Australia: improved market access, increased two-way trade and investment, and inclusive economic growth in Indonesia.

Subscribe to our newsletter

© Copyright IA-CEPA ECP Katalis