Indonesia Sets Sights on Becoming World’s Second-Largest Coffee Producer
June 01 - 2025
Coffee Geography Magazine
Indonesia has formally declared an ambitious national goal: to ascend to the position of the world's second-largest coffee producer, displacing Vietnam from its current rank. This strategic vision was articulated by Indonesia's Coordinating Minister for Food, Zulkifli Hasan, who emphasized a renewed focus on significantly boosting domestic coffee output.
Currently positioned as the globe's fourth-largest coffee producer, Indonesia generates an impressive annual harvest exceeding 700,000 tons. Minister Hasan expressed strong confidence that this production level represents merely a foundation for substantial growth. He believes that with the implementation of targeted strategies, Indonesia possesses the inherent potential to dramatically increase its yield and climb the global production rankings.
The minister outlined a comprehensive strategy to unlock this potential. Central to the plan is enhancing productivity at every stage of the coffee value chain. This includes the critical step of utilizing superior quality seedlings to establish more robust and productive plantations. Furthermore, significant improvements are planned for post-harvest processing techniques to preserve bean quality and maximize flavor potential. Recognizing the importance of market appeal, the strategy also involves adopting more sophisticated and competitive packaging solutions, which are expected to elevate the perceived value and marketability of Indonesian coffee internationally.
Minister Hasan highlighted Indonesia's significant natural advantages for coffee cultivation, pointing to vast tracts of land ideally suited for growing diverse coffee varieties. This advantage is complemented by the country's rich coffee heritage, formally recognized through 54 registered Geographical Indications (GIs). These GIs – comprising 26 for Arabica, 24 for Robusta, three for Liberica, and one for Excelsa – signify unique regional profiles and qualities, providing a valuable platform for premium branding and market differentiation.
The scale of Indonesia's ambition becomes clear when considering the current leaders. While Brazil remains the undisputed top producer, Vietnam occupies the second position with a formidable annual output of approximately 1.8 million tons – a benchmark Indonesia now aims to surpass. Colombia currently holds the third-place ranking.
Achieving this leap will require concerted effort. Minister Hasan underscored the necessity for "stronger cooperation" between the Indonesian government and private sector stakeholders. This collaborative approach is deemed essential to mobilize the necessary investments, expertise, and market access needed to fully exploit Indonesia's coffee potential.
The economic significance of coffee to Indonesia is already substantial. Recent data from the Central Statistics Agency (BPS) illustrates a robust export performance. Between January and September 2024 alone, Indonesia exported 342,220 tons of coffee, generating $1.49 billion in revenue. Key export destinations during this period included the Philippines, the United States, and Malaysia. Concurrently, the country imported 67,650 tons of coffee valued at $319.84 million, indicating a complex trade dynamic where Indonesia both supplies significant volumes to the global market and fulfills specific domestic demand through imports. This existing trade framework provides a solid foundation upon which to build the envisioned production surge.