Government Appreciates Collaboration To Encourage Growth of Indonesian Coffee Industry

The Coordinating Ministry for Economic Affairs welcomed the collaboration that can be done between Indonesian coffee industry players and the government in encouraging the growth of the coffee industry in Indonesia. The move will also aim to promote Indonesian coffee in the global market.

Coordinating Minister for Economic Affairs Airlangga Hartarto welcomed the arrival of coffee industry players at the Office of the Coordinating Ministry for Economic Affairs to coincide with International Coffee Day which fell on October 1, 2021.

At this meeting, coffee industry players expressed a desire to work with the government for the development of coffee business in Indonesia and support in international coffee championships.

The government appreciates the commitment of Indonesian coffee industry players to continue to encourage the growth of the Indonesian coffee industry.

The coffee industry has a large role in the absorption of labor in Indonesia, empowering 1.86 million heads of farming families and 50 thousand general workers.

“Coffee is the third most important commodity in plantations after palm oil and natural rubber. Coffee also contributes a percentage to the GDP of plantations by 16.15%,” said Minister of Industry Airlangga.

In the last 10 years, the Indonesian coffee industry experienced significant growth of 250%. Currently, Indonesia is the 4th largest coffee producer in the world after Brazil, Vietnam, and Colombia.

Indonesia’s coffee land area reaches 1.25 million ha with total production of up to 761 thousand tons per year.

The government has provided support for the community to encourage the growth of indonesia’s coffee industry through the People’s Business Credit (KUR) program.

“The realization of KUR for coffee in 2020 amounted to Rp1.2 trillion with 53 thousand debtors and the realization of the coffee industry KUR until July 21, 2021 amounted to Rp661 billion with 25 thousand debtors,” Airlangga said.

The coffee industry has great potential to continue to grow in Indonesia. The high interest of the public to develop the coffee business is one of the proofs.

“One of the favorite training programs in The Pre-employment Card is the training of being a barista. This shows that young people are now very interested in the coffee industry,” said Airlangga.

The government will continue to encourage the growth of indonesia’s coffee industry both through food estate based on the corporatization of farmers, KUR, and important research to add value to coffee itself.

“International cooperation both bilateral, regional, and international we need to use as optimally as possible to boost Indonesian coffee into a superior export-oriented commodity in both traditional and non-traditional markets,” concluded Airlangga.