Tea Agro-Industries 77 Hits

BACKGROUND

  1. Tea is one of the most widely consumed beverages in the world
  2. Currently, ranks in number eight of the largest producers of tea globally
  3. Although area of tea plantation is declining, tea production has remained relatively stable. This indicates that the remaining tea plantations had become more productive.

TEA INDUSTRIES PROFILE

     Approximately 65 percent of Indonesia tea production is exported. The main countries of export destination are Russia, Britain, and Pakistan.

     Exports are dominated by large estates, both state, and private.

     Tea products exported by Indonesia consist of black tea powder, fermented, black tea leaves, fermented, green tea leaves, less than 3 kg packaging, powdered green tea, less than 3 kg packaging, and black tea, fermented, and fermented partially.

PROSPECTS FOR INVESTMENT OF TEA INDUSTRIES IN WEST JAVA:

  1. Global tea consumption increased by about 4 percent per year. Domestic tea consumption increased at a much higher rate: more than 20 percent per year in recent years.
  2. Tea production in Indonesia showed a downward trend and the number of export is about 65 percent of production of tea (mostly premium).
  3. Indonesia needs to import tea to meet domestic demand and export demand. About 25 percent of domestic consumption of tea in Indonesia is imported.
  4. West java region has a climate of constant temperature and humidity which is an ideal condition for growth of tea plants. In particular, plateau with cold weather will be helpful to produce a good quality of tea weaves.

EXISTING CONDITION

     Tea plantations area in West Java reached 109 900 Ha, or 70 percent of the tea plantations in Indonesia. Each year of the province’s tea production contributes to about 80 percent of the national tea production.

     Tea plantations are scattered in Bandung regency including West Bandung, Bogor, Ciamis, Cianjur, Garut, Majalengka, Purwakarta, Subang, Sukabumi, Sumedang, and Tasikmalaya regency. Here is a list of potential regions for developing tea commodity.

Current Area of tea Plantations in West Java

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     Source: Statistic Center of West Java

Here is a map of the development of tea plantations in West Java.

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     Bandung regency is the main area for producing tea in west java. Around 42 percent of tea production in west Java is produced in Bandung regency. Tea plantation areas are spread over Pengalengan, Ciwidey, Cipeundeuy, Cikalong Wetan, and Pasirjambu. With the extent of land that has been used in West Java. Here is a tea production in west Java in 2008-2012.

Annual Tea Production in West Java (Ton)

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Source: Statistic Center of West Java

     Based on the table. Tea production in West Java from year 2008-2012 is always fluctuating. The highest tea production is in 2009 with 113 707 ton, while the lowest production occurred in 2010 with 100 438 ton. Thus, considering the area of land and production as well as other factors which supporting the tea plantations. West Java is suitable to serve the development of agro-industrial tea.

INVESTMENT OPPORTUNITY

  • The proposed investment is to create tea agro-industries including:
  1. Tea plantations
  2. Tea walk in the tea plantations
  3. Housing
  4. Processing for different variants of tea
  • Value of investments

Agro-tea manufacture required an investment of approximately around 40 billion.