Indonesia Raw Common Coffee Bean insights

Adverse weather conditions restrict production, while external demand remains strong, driving significant appreciation.

The coffee industry in Indonesia is currently experiencing rapid development, both in terms of production and consumption. Daryanto Witarsa, Chairman of the Specialty Coffee Association of Indonesia (SCAI), said that the proliferation of coffee shops throughout Indonesia indicates a significant increase in domestic consumption. However, questions arise regarding whether domestic coffee production can meet this increasing demand, both from the domestic industry and the international market. Indonesia's current coffee production is dominated by Robusta and Arabica. According to Daryanto, around 20 percent of Indonesia's coffee production is Arabica, while Robusta dominates the rest. Along with the increase in exports, especially to the United States, Europe, and China , the need to meet the domestic market is also increasing. "Our domestic coffee consumption is increasing, and slowly perhaps Indonesia can prioritize fulfilling domestic needs," he told KONTAN, Thursday (24/10). Although Indonesia's coffee exports are still strong, especially with increasing global demand , Daryanto did not rule out the possibility that in the future, Indonesia's coffee production will be more directed to meet domestic needs. This is in line with the previous government's direction to encourage increased domestic consumption.

BPS noted that Indonesian coffee exports reached 342,330 tons with a value of US$ 1.49 billion, an increase of 29.56% annually.