Onions and shallots market in Indonesia

Earlier Report Observations

From 2018 to 2021, the Indonesian market for fresh onions and shallots expanded from 1 619 thousand tons to 2 116 thousand tons, while production rose from 1 503 thousand tons to 2 005 thousand tons. This growth was primarily driven by the government's self-sufficiency policy, which included halting imports of consumer-grade red onions in 2019, thereby strengthening domestic production. The establishment of reference purchase and selling prices under BAPANAS Regulation No. 11/2022 in 2021 further stabilized farmer incomes and supported market volume.

After 2021, production stabilized around 1 980 thousand tons, while market volume continued to rise, peaking at 2 158 thousand tons in 2022. Increased production costs, stemming from revised fertilizer subsidy policies and a spike in fuel prices in September 2022, constrained further output growth. However, the addition of cold-storage and reefer infrastructure by the National Food Agency across eight provinces helped reduce post-harvest losses and maintain market supply.

Subsequent years saw continued regulatory refinement, with BAPANAS introducing stricter standards for food safety, quality, and labeling of fresh onions and shallots. Exports to ASEAN countries grew significantly, from 59.6 tons in 2021 to 612.8 tons in 2023, providing an additional outlet for producers, although export volumes remained modest relative to the domestic market.

Production onions and shallots in Indonesia

In kind, 2018-2021, K t

Indonesia ranked 11th globally in onion and shallot production from 2018 to 2021.

Top producers of onions and shallots, 2018-2021

World map of production of onions and shallots, 2018-2021

Indonesia's onion and shallot production grew for the third consecutive year. In 2021, the country produced 2 005 K t, marking a 10.4% increase compared to the previous year. Between 2018 and 2021, production rose by 33.3%, equivalent to an annualized growth rate of 10.1%.

Annual dynamics of production in Indonesia in kind, 2018-2021, K t

Exports onions and shallots from Indonesia

Exports in kind, K t

Indonesia's onion and shallot exports declined for the second year in a row. In 2021, export volume stood at 4.1 K t, a 51.8% decrease from the previous year. From 2018 to 2021, exports fell by 21.4%, with a compound annual growth rate of -7.7%. The highest export volume was recorded in 2019 at 8.8 K t, which also saw the largest increase of 67.6%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, K t

From 2018 to 2021, Thailand and Singapore were the primary destinations for Indonesia's onion and shallot exports in volume terms, together accounting for 81.4% of total flows, while other markets made up the remainder.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, K $ US

After rising for two years, Indonesia's onion and shallot exports in value terms declined. In 2021, exports amounted to 7 028 K $ US, a 49.1% drop year-over-year. Between 2018 and 2021, exports increased by 11.5%, equating to an annualized growth rate of 3.7%. The peak value was recorded in 2020 at 13 802 K $ US, while the largest increase occurred in 2019 at 68.1%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, K $ US

From 2018 to 2021, Thailand and Singapore dominated Indonesia's onion and shallot exports in value terms, with Thailand accounting for 66.8% and Singapore for 20.4% of total flows, together representing 87.1% of exports. Other partners accounted for the remaining share.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports onions and shallots to Indonesia

Imports in kind, K t

In 2021, Indonesia's onion and shallot imports reached 115.2 K t, a 14.6% decrease compared to 2020. Between 2018 and 2021, imports fell by 4.7%, equivalent to an annualized decline of 1.6%. The lowest import volume was recorded in 2019 at 111.9 K t, while the highest was in 2020 at 134.9 K t, which also saw the largest increase of 20.5%.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, K t

From 2018 to 2021, India, New Zealand, and China were the main sources for Indonesia's onion and shallot imports in volume terms. India contributed 42.1%, New Zealand 29.7%, and China 13.7%, together making up 85.5% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, K $ US

In 2021, Indonesia's onion and shallot imports in value terms amounted to 60 859 K $ US, a modest 7.1% decrease from 2020. Between 2018 and 2021, imports increased by 7.5%, equating to an annualized growth rate of 2.4%. The lowest value was recorded in 2019 at 56 596 K $ US, while the highest was in 2020 at 65 512 K $ US, which also experienced the largest increase of 15.8%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, K $ US

From 2018 to 2021, New Zealand, India, and the Netherlands were the leading sources for Indonesia's onion and shallot imports in value terms. New Zealand accounted for 41.0%, India for 25.7%, and the Netherlands for 16.6%, together representing 83.3% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021