Indonesia worries about this year’s coffee supply
January 21 - 2023
Coffee Geography Magazine
Indonesia managed to record coffee exports from January to May 2022 reaching US$394 million, an increase of 37 percent compared to the same period the previous year. The value of Indonesia's coffee exports to the world in 2021 reached US$851 million and Indonesia occupies the 13th position as a coffee exporting country to the world. The majority of Indonesia's coffee export destination countries include the United States, Egypt, Japan, Spain and Malaysia.
In Indonesia, coffee is included in one of the largest plantation crops according to the type of plant. According to the Central Statistics Agency (BPS), the total area of coffee plantations in Indonesia was 23,300 hectares in 2021. However, the area of coffee plantations in Indonesia in 2021 is far less than 2017 which is 46,900 hectares. The Indonesian Ministry of Foreign Affairs stated that Indonesia is one of the largest coffee producing countries and exporters in the world. BPS reports that Indonesia's total coffee exports was 380,173 metric tons in 2021. This number was higher than 2018 to 2020 which were 277,411 tons, 355,766 tons, and 375,555 tons. However, Indonesia's total coffee exports in 2021 were lower than in 2017 which was 464,198 tons.
As per the report from BPS, the United States led Indonesian coffee exports market in 2021 with 57,694 tons, followed by Egypt (48,521 tons), Malaysia (29,059 tons), Japan (25,137 tons), Italy (24,438 tons), Belgium (14,215 tons), Great Britain (12,259) tons, Germany (12,103) tons, Russia (8,605 tons), Canada (3,759 tons), and others 144,380 tons
Balkan Country Coffee Prospect
The Indonesian Embassy in Belgrade has promoted Indonesian coffee in various trade promotion events. Apart from participating in the 89th International Agricultural Fair this year, the Indonesian Embassy in Belgrade in collaboration with the Indonesian Ministry of Agriculture has also held the One Day with Indonesian Coffee, Fruits and Floriculture (ODICOFF) exhibition in November 2021. Overall, this exhibition produced a letter of trade intent worth 7.3 million US dollars where coffee is one of the products that attracts the attention of local importers.
The intensive promotion carried out by the Indonesian Embassy in Belgrade to penetrate the Serbian coffee market is showing promising results. Bandung-based CV Optima Karya Pitaya, an Indonesian exporter participating in the 89th International Agricultural Fair on May 21-27, 2022 in the city of Novi Sad, Serbia, made its first export of one container of Robusta coffee to Serbia.
This export is the first step to increase the share of the coffee market in Serbia, which still has a great opportunity to continue to be cultivated.
Based on data from the Serbian Statistics Office, in 2021 Serbia imported roasted coffee worth more than US$20 million and green beans worth more than US$63 million. However, imports of Serbian coffee from Indonesia are still relatively low. Therefore, continuous promotion of coffee at various events in Serbia is needed to further introduce Indonesian coffee to the local community.
Eustasius Wibowo, Founding Director in charge of Operation of CV Optima Karya Pitaya told Coffee Geography Magazine: “At the moment, we manage 100 hectares and we involve other farmers around, making collaboration with other 500 hectares totally. The annual production is about 2 tons per hectare for wet coffee (cherry). We involve employees in the harvest rather than having fixed employees. Our target markets are Singapore, Thailand, Malaysia, the Philippines, South Korea, Russia, and Turkey. Besides, we are looking at Sweden, the Netherlands, and Australia.”
“One strong phenomenon in the last 2 years is that coffee is always in deficit in Indonesia! Today, we do not have enough coffee for export. It makes us think hard about this year's supply. High demand from foreigners is our prospect. It is about regular coffee. But for specialty, we have problem because we make specialty coffee as handmade, not industrialized. We have few specialties than regular coffee.", Wibowo added.
Roland Kristiawan, Founding Director in charge of Marketing, CV Optima Karya Pitaya, noted: “Our company exports both green and roasted coffee beans. I found my company’s future prospects as promising due to specific taste. Indonesian coffee become more acknowledged and familiar. But still have more to do.”
Due to the habit of Indonesians who like to drink coffee, it's no wonder why Indonesia is one of the best coffee producers, even in 2021, coffee supply was predicted to reach 795 thousand tons with consumption of 370 thousand tons, resulting in a surplus of 425 thousand tons. With this high amount of coffee supply, Indonesia, as the fourth coffee producer in the world, exports a lot of coffee to foreign countries. There are at least more than 10 types of original Indonesian coffee that are in demand by the international market.
Aceh Gayo coffee is a type of Arabica coffee produced in the Central Aceh region, in the Gayo highlands. Aceh Gayo coffee thrives in the highlands of Bener Meriah District, Central Aceh and the Gayo Lues region. So, it's no wonder that Aceh is one of the largest regions producing Arabica coffee beans, accounting for 40 percent of the total crop in Indonesia. Even this type of coffee is well known in various parts of the world.
This Aceh Gayo coffee has a high taste, namely with a delicious and distinctive aroma, lower acidity and has a strong bitterness. With a variety of tastes and aromas that are superior to other types of Arabica coffee, it's no wonder that it was awarded Fair Trade Certified™ as a form of appreciation for Aceh Gayo coffee as the best coffee in the world.
Aceh Gayo coffee itself is currently being exported to various countries such as Asia, America and Europe. Even though it has export quality, the people of Aceh themselves have a distinctive traditional way of serving. This coffee is not brewed like most other ways of making coffee, but coffee and water are boiled together in a pot until it boils, then poured into a glass containing milk and sugar.
Apart from Aceh Gayo Coffee, coffee from Indonesia which also has the next export quality is Toraja Coffee. Maybe you are already familiar with this one coffee brand. Yup, because apart from being exported abroad, we can also easily find Toraja coffee in various shopping centers and also centers for typical Indonesian souvenirs. Toraja coffee itself is coffee that comes from South Sulawesi, precisely in the Toraja mountains. The process of processing this coffee uses the wet milling method which makes this Toraja coffee have a distinctive aroma. Even the distinctive aroma of this one coffee is well known in the country and abroad. Even already widely spread in Japan and America.
Amazingly, currently Toraja coffee is considered a premium drink, it has even been patented by a Japanese company called Key Coffee since 2005. Considered one of the best types of coffee, Toraja coffee has two variants, namely Toraja Arabica and Toraja Robusta. Both have distinctly Indonesian coffee flavors and qualities, such as cinnamon or cardamom. The taste is not too strong and the aftertaste feels soft and smooth on the palate.
Besides that, Toraja coffee usually does not leave a bitter after taste which some people find disturbing. The bitter sensation that comes from Toraja coffee is only there at the beginning and disappears in one gulp. Toraja coffee and the majority of other coffees grown in Sulawesi tend to have an earthy taste, like the taste of land or forest with a low acid content.
Apart from the exotic tourist spots that Bali often offers, it turns out that Bali is also famous for its coffee production which is often hunted by tourists. In Kintamani area of Bali, there is coffee that has different characteristics from the others and has export quality. This Bali Kintamani coffee has a distinctive taste, which presents a bitter taste as well as an orange taste.
The reason that the orange taste in coffee is produced because the coffee plantations in Kintamani are neighbors with orange groves which are also a feature of Kintamani. Because at first glance it has an orange taste, the after taste of this Bali Kintamani coffee gives a fresh taste that is the hallmark of this Balinese Kintamani coffee. There are also those who say that Bali Kintamani coffee has a bitter and sour taste at the beginning, but after you drink it the bitter taste changes to a sweet taste.
The processing of Bali Kintamani coffee itself is carried out traditionally using the Balinese irrigation method. Manual processing is what then gives off a stronger coffee aroma. Not only being hunted by foreign tourists, but Bali Kintamani coffee has also been exported to Japan, France and other European countries.
Not only famous for its tobacco, but Temanggung, Central Java is also famous for its coffee. The quality of Temanggung coffee cannot even be said to be trivial because it has export quality that is quite respected in the world. With a coffee brand called Robusta Temanggung, coffee harvested in the Temanggung area has a unique taste. Cultivation of coffee planted between tobacco trees results in the yield of Temanggung coffee absorbing the character of the smell of fresh tobacco from the surroundings, which produces a combination of different coffee flavors, namely the aroma of tobacco with a thick and dominating bitter taste. This one coffee is very authentic and is loved not only by the people of Indonesia but also by foreign tourists. Even this Temanggung Robusta coffee has been exported to countries in Europe, the Middle East to Latin America.
Some areas on the island of Java are also producing areas of export quality coffee. One of them is coffee from the island of Java which is very famous and worldwide called Ijen Raung coffee. This coffee is a type of Bondowoso Arabica coffee. Quoted from IDNTimes.com, a container of Java Ijen Raung coffee typical of Bondowoso was first exported in 2011, but its popularity abroad has skyrocketed. Until 2016, Indonesia managed to export 43 containers or the equivalent of 860 tons of coffee.
Java Ijen Raung coffee has a unique characteristic, namely a slightly spicy taste with the aroma of forest flowers. The acid level is moderate, but tends to Javanese acid rather than citrus. Surely you are already familiar with civet coffee which is a favorite of Indonesians. Not only Indonesians, you know, because civet coffee is also the target of coffee lovers around the world. It's no wonder why Luwak coffee is called one of the best export-quality coffees from Indonesia.
Luwak coffee is produced from a unique process. Namely by utilizing the mongoose to choose the best coffee beans. The mongoose, which eats coffee beans, cannot digest the coffee beans it eats, so its excrement still leaves coffee beans. The coffee beans from civet droppings are the best coffee beans that are worthy of being processed into high-tasting coffee.
Unique West Java Coffees
This coffee from the West Java region is well known among local coffee lovers. West Java Province is one of the leading coffee producers in Indonesia. Coffee beans from this region are shipped to various countries for coffee connoisseurs to enjoy. The West Java Provincial Government even sent some of the best coffee from West Java (Jabar) farmers to the World of Coffee exhibition in Milan, Italy on June 23-25, 2022.
Unexpectedly, enthusiasm was high. On the first day of the exhibition, the "West Java Coffee" stall managed to attract attention and was visited by many. They are curious about the specialty of West Java coffee. In fact, looking at history, coffee in West Java itself had become the largest export commodity to the Netherlands during the colonial era. The VOC also favoured Arabica coffee in West Java for trading. The success of the colonial era continues to be brought to this day coffee from West Java has been produced and exported to foreign countries. Summarized by detikJabar, here are key typical West Java coffees whose names are already worldwide:
Ciwidey Coffee Coffee that has a sweet, floral and sour taste. Planted on Mount Tilu, Ciwidey, Bandung Regency, this coffee has received the MURI record as the most expensive coffee in Indonesia. In fact, this coffee was once the most expensive coffee at a coffee auction in the United States, at a price of Rp. 2 million per kilogram. Coffee that has a sweet, floral and sour taste is said to be the most suitable for serving via the V60 manual technique by pouring hot water at 93 degrees Celsius onto coffee grounds placed on V60 filter paper. Even though it does not contain alcohol, this coffee is said to taste like wine.
Malabar coffee was brought by the Dutch East Indies Government from Malabar in India. Malabar coffee was brought by the Dutch East Indies Government from Malabar in India. This coffee is then planted in the Pangalengan area, Bandung Regency at an altitude of 1,500 meters above sea level. During the colonial period, this type of coffee was also nicknamed 'Java Preanger'. Recognized and received four coffee awards from the Specialty Coffee Association of America Expo, this Malabar coffee has a flower-like aroma. The taste that comes out is slightly sweet with a fairly strong acidity.
Papandayan coffee is the target of many coffee lovers around the world. Besides being famous for its natural beauty and sunrise, it turns out that Mount Papandayan in Garut Regency also produces extraordinarily delicious coffee. Coffee in the mountains grows at an altitude of 700-1,200 meters above sea level with a temperature of 16-20 degrees Celsius. Through these geographical advantages, Papandayan coffee has become the target of many coffee lovers around the world. In fact, this coffee received satisfactory results from a taste test by the Specialty Coffee Association Europe (SCAE) on July 27 2016.
Mount Puntang Coffee. Having received praise as the best coffee in the world from President Jokowi, in fact, this coffee won an international award at the Specialty Coffee Association of America Expo in Atlanta, USA on April 14-17 2016. The coffee beans, which have a philosophical value as a form of gratitude for the natural blessings of Mount Puntang, have been cultivated since 2007 on an area of 270 hectares. This coffee has a sweet taste and has a floral aroma.
Palasari coffee has a less sour taste even though it comes from Arabica coffee beans. This coffee comes from the slopes of Mount Manglayang, Cilengkrang District, Bandung Regency which is now being developed into the Coffee Village area. Palasari coffee has a less sour taste even though it comes from Arabica coffee beans.