This is an Overview of Indonesian Coffee Production, Export, and Consumption until 2026

Data from the Indonesian Ministry of Agriculture (Kementan), processed by the Indonesian Chamber of Commerce and Industry (Kadin), shows that Indonesia has a roadmap for the production, export, and consumption of Indonesian coffee until 2026.

Details show that coffee production reached 793,190 tons in 2022. Net exports amounted to 413,530 tons. Consumption is projected at 379,655 tons.

Production is projected to decrease by 0.45% to 789,600 tons in 2023. Net exports are expected to increase by 0.84% to 417,000 tons, while consumption will decrease by 1.86% to 372,600 tons in the same year.

According to the graph, production is projected to remain stagnant at around 789,000 tons throughout 2024-2026. However, net exports are predicted to continue increasing, from 420,000 to 427,000 tons between 2024 and 2026.

Meanwhile, consumption is predicted to continue declining, from around 368,000 tons in 2024 to 361,000 tons in 2026.

This data forms the roadmap for the development of the coffee industry. The aim is to identify domestic consumption and export needs, so that production needs can be determined based on available land, with options for extensification, intensification, or both.

Despite the projected increases and decreases, Kadin states that Indonesia still has significant opportunities in the development of the coffee processing industry, due to its abundant natural resources as potential raw materials and a large market.

"Therefore, strategic efforts such as downstream processing are needed to increase the added value of Indonesian coffee products. In the future, the government will encourage domestic coffee processing," wrote Kadin in its report to Databoks, quoted on Tuesday (April 16, 2024).

According to Kadin, the Ministry of Industry is preparing a downstream processing plan for coffee products, seeing the good prospects for coffee and its derivative products. The government is preparing facilities to facilitate the downstream processing of coffee commodities.

"If this can be done, many investors will enter Indonesia, and the coffee downstreaming program will bring positive results," said Kadin.

Meanwhile, the Ministry of Agriculture continues to encourage and facilitate the formation of sustainable marketing partnerships, primarily in absorbing plantation products at the farmer level by businesses or offtakers.

(See also: 10 Largest Coffee-Producing Provinces in 2023, Majority from Sumatra)