Tuesday, 07 April 2020 | 01:05 WIB

Indonesia Has Significant Potential for Coffee Processing Industry

Indonesia Has Significant Potential for Coffee Processing Industry (kemendag)

JAKARTA, NETRALNEWS.COM - Indonesia has the opportunity to develop coffee processing industry. Aside from having a large market, the opportunity is also supported by the potential of raw materials. Therefore, strategic efforts are needed, such as downstreaming, in order to increase added value and improve production capacity.

"Indonesia is the fourth largest coffee bean producing country in the world after Brazil, Vietnam, and Colombia, with an average production of around 700,000 tons per year or around nine percent of global coffee production. Therefore, we continue to boost coffee beans to be processed domestically, "said Director General of Agro Industry at the Ministry of Industry Abdul Rochim.

Rochim said that driven by the growth of the middle class and changes in lifestyle of the Indonesian people, the performance of the coffee processing industry in Indonesia experienced a significant increase. "For example, we see roasts, cafes and stalls or coffee shops developing rapidly, both in big cities and small towns," he said.

Through these developments, Indonesia, which was originally known as a coffee producer, is slowly developing into a coffee-consuming country. In fact, the national coffee processing industry has not only become a major player in the domestic market, but has also penetrated the global markets.

"Exports of processed coffee products provide substantial foreign exchange (forex) earnings in 2018, reaching US $ 579.98 million, a jump of 19.1 percent compared to 2017," Rochim said. Exports of processed coffee products from Indonesia, which are dominated by instant coffee products, extracts, essences and coffee concentrates, have reached a number of foreign markets in ASEAN, China and the United Arab Emirates.

The Ministry of Industry also noted that the trade in processed coffee products in 2018 had a surplus of more than US $ 420 million. The trade surplus of processed coffee products in 2018 rose 10.28 percent from the surplus in 2017.