Coffee

Coffee

Indonesia’s coffee production is declining amidst increased global and local consumption. Indonesia contributed approximately 7% of global coffee production (December 2017 to December 2018), of which 12% was Arabica and 88% was Robusta. At the global level, Indonesia ranks 4th in coffee production behind Brazil, Vietnam, and Colombia.  However, according to USDA, Indonesia’s coffee production declined by 1.7% (2013-2017). which led to a 4.4% decline in Indonesia’s coffee exports during that time. It is projected that there will be a demand – supply gap for coffee where global production will not be able to meet the growing demand of the global market. On a national level, with an upward swing in domestic consumption the demand for coffee has also been increasing. Based on previous production trends, Indonesia’s coffee consumption is projected to surpass its production capacity by 2035, meaning that it is crucial that Indonesia’s coffee productivity is increased, not only to strengthen Indonesia’s position in the global coffee market but also to improve the livelihoods of farmers through higher coffee yields, which are currently still far below their potential.

In order to increase coffee farmers productivity and incomes, PRISMA and its partners promote good agricultural practices, introduce fast-growing and smaller coffee plant varieties, support crop rejuvenation programs, and encourage increased access to markets and capital. The coffee sector showed a positive contribution through to December 2018 in improving farmers' incomes and partners' business profits.


As of December 2018

9,936

IDR 17bn