PTPN I Accelerates Tea Downstreaming to Expand Export Market in Europe

PT Perkebunan Nusantara (PTPN) I is accelerating the downstream processing of tea to expand its export market in Europe by strengthening premium products, increasing added value, and enhancing competitiveness in the global market. PTPN I Corporate Secretary Aris Handoyo stated that the company is preparing a blueprint for expanding the premium tea market into Europe after successfully penetrating the Canadian and Dubai markets, in line with the growing potential of the global premium tea market. “After successfully penetrating the premium markets in Canada and Dubai, the corporation is now designing the next strategic steps to strengthen its position in Europe,” Aris said. The company is focusing on developing new premium tea product variants specifically designed to be marketed in London, England, as a gateway to the wider European market. According to Aris, the development of these premium products will be carried out through strategic collaborations with various world-renowned tea brands. The partnership is expected to strengthen the competitiveness of domestic products in the international market. “Going forward, our focus is to develop new premium product variants that are specially conceptualised for display in London city stores. We will execute this through tactical collaborations with various world-leading tea brands,” Aris stated. Through accelerated downstreaming, product innovation, and premium market expansion, PTPN I is optimistic it can increase the contribution of Indonesian tea exports while strengthening its position in the European and global markets. The state-owned enterprise is also continuing to solidify its position in the global tea industry by relying on premium quality and extensive plantation areas, making it optimistic about competing against major world producers such as Kenya, India, and Sri Lanka. He mentioned that the total mature tea plantation area currently managed reaches 12,700 hectares. From this area, up to May 2026, the company recorded a total production of 11.6 million kilogrammes, with a productivity rate reaching 912 kilogrammes per hectare. According to him, the dry tea production trend for PTPN I in recent years has shown a fluctuating graph but tends to strengthen significantly in terms of land productivity. It was recorded that in 2022, dry production stood at 29.05 million kilogrammes with a productivity of 1,685 kg/ha, which corrected in 2023 to 25.97 million kilogrammes (productivity 1,499 kg/ha), then rebounded in 2024 with a yield of 28.44 million kilogrammes (productivity 1,651 kg/ha). In 2025, productivity performance soared sharply, breaking through the 2,004 kg/ha mark with total dry production reaching 29.28 million kilogrammes. “These impressive operational records are directly proportional to international market absorption. Throughout last year, PTPN I successfully shipped an export volume of up to 8.9 million kilogrammes,” he revealed. PTPN I’s export market map has reached various countries, with Malaysia as the main destination, followed by Korea, Thailand, and several other potential markets in Asia. The corporation’s tea products have also penetrated the Middle East region, such as Dubai, and have broken into the tight markets of Europe and the United States, including Germany and England. Aris said the quality of PTPN I tea is able to compete with products from Kenya, India, and Sri Lanka, and has even been marketed in Twinings outlets in London, England. In addition to maintaining dominance in the bulky tea market, the company is also strengthening downstreaming to increase added value in the domestic market by reinforcing superior retail products such as Walini, Goalpara, and Gunung Mas tea bags. The corporation is developing Ready to Drink (RTD) tea products. This product innovation aims to engage the younger generation to look back at and consume local tea. “Secondly, we are massively utilising social media to educate young people about the philosophy and health benefits behind the habit of drinking tea,” Aris explained. Aris added that PTPN I is also encouraging local premium tea products to enter cafes as a strategy to make tea consumption part of the younger generation’s lifestyle again.