Government Committed to Increase Value Added of Indonesian Coffee
The Ministry of Industry is committed to increase the value added of coffee in Indonesia, which is the fourth biggest coffee producing country in the world after Brazil, Vietnam and Colombia. "We are committed to increasing the value added of coffee through the support of machine, so after roasting and packaging, the coffee can have the value added," said Minister of Industry Airlangga Hartarto.
Indonesia produced 639,000 tons of coffee beans in 2017 or about 8 percent of world coffee production, with the composition of 72.84 percent is robusta and 27.16 percent of arabica. Indonesia also has various types of specialty coffee that known in the world, including luwak coffee with typical flavor and aroma according to its geographical indications which is the excellence of Indonesia.
Until now there are 22 Geographical Indications for Indonesian Coffee. Starting from Gayo Arabica Coffee, Arabica Toraja Coffee, to the latest are Robusta Pupuan Bali Coffee, Arabica Sumatera Koerintji Coffee, Liberika Tungkal Jambi Coffee, and Liberika Rangsang Meranti Coffee.
"For Temanggung regency, we appreciate the step of Government of Temanggung Regency that already have registered two Geographical Indications Coffee from Temanggung that are Arabica Sindoro-Sumbing Java Coffee and Robusta Temanggung Coffee," said Airlangga.
He continued, with country’s potential market that is still increasing, the policy development of the coffee processing industry, through the increase of human resources capacity such as baristas, roasters, and coffee testers (cupper). Except of that, the increase of value added of country’s coffee beans, and the improving of the quality of processed coffee which is mainly the roasted coffee through the capability of roasting technology.
One of the efforts to increase human resources was the Ministry of Industry had compiled the Standard of Indonesian National Work Competence (SKKNI) for coffee processing industry on 2017. It is expected that SKKNI can be implemented by national coffee stakeholders in the future.
Furthermore, in accordance to the mandate of Plantation Regulation No. 39 of 2014 on Plantations, a Coffee Council of Indonesia (Dekopi) was established in Yogyakarta on December 9, 2017 and continued with the inauguration of the Dekopi Board on 11 March 2018 for the period of 2018-2022. "These programs are the government’s commitment for the development of national coffee commodities," said Minister of Industry.
The development of country’s processed coffee industry and specialty coffee is still very good, considering the average of Indonesian’s coffee consumption is 1.1 kg per capita per year. It is far below coffee importing countries such as; US is 4.3 kg, Japan is 3.4 kg, Austria is 7.6 kg, Belgium is 8.0 kg, Norway is 10.6 kg, and Finland is 11.4 kg per capita per year.
The strength of the national coffee processing industry is not only supported by the large domestic market but also the increasing of capability of the national coffee processing industry to export to international markets, especially to developing countries such as Asia, Middle East, and Africa, except of conventional export destinations. "Hopefully in the future, Indonesia can become the main exporter of roasted beans in Asia and (all over) the world," Airlangga said.
Export Rose 10 Percent
Meanwhile, the national coffee processing industry was able to significantly contribute to the country’s foreign income from export value that reaching 469.4 million US dollars in 2017, up to 10 percent from the previous year. According to Minister of Industry, the positive of the export value of coffee was due to several factors, such as the increased of productivity in the industrial sector and the rising of commodity prices.
Therefore, we intensively boost the competitiveness of the national coffee processing industry, so it can compete in the global arena. Airlangga also said that the Ministry of Industry always supports the promotion of coffee by including coffee in the exhibitions in various countries.
Director General of Agro Industry of Ministry of Industry, Panggah Susanto, said that in order to increase the value of national industry including coffee processing sector in globalization era of trade and free market, it needed strategic efforts to boost its competitiveness and productivity.
Among of the efforts were the using of technology that increase the efficiency and innovation, improving the quality of product through the implementation of the quality of management system and food safety, and the development of product diversification to adjust of the market demand.
"With the country’s potential market that still has developed, the policy of the development of country’s coffee processing industry also needed the increase of human resource (HR) capacity, such as barista, roater, and coffee tester or cupper," said Panggah.
Source: Antara
Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the mass media that became the reference.
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