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Cocoa, coffee industry cries out for EU pact to sweeten trade
Indonesia’s cacao bean production has declined rapidly. The government is hoping a trade packs with the EU will revive the industry.
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Coffee farmer Sular checks on his plants in Sumber village in Bulukerto, Wonogiri, Central Java. (JP/Ganug Nugroho Adi)
Wherever you are in the world, there is a good chance the coffee you sip or chocolate you savor is made from Indonesia’s homegrown beans, as the country ranks fourth in cocoa production and coffee exports.
In fact, the EU could soon open its doors for more Indonesian coffee, cocoa and other commodities traded under the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). A 2011 EU-Indonesia partnership calculated that the agreement could add US$2 billion to the Indonesian exports.
But even as Indonesia is poised to get a firmer grip on global coffee and cocoa markets with the pact, industry players and experts are still wincing at current trade conditions, hoping that the stale IEU-CEPA discussions since 2009 will soon conclude to salvage the sector.
According to the International Cocoa Organization (ICCO), Indonesia’s cacao bean production has declined rapidly, falling from 410,000 tons in 2013 to an estimated 240,000 tons in 2018. A 2019 Food and Agriculture Organization report portrayed a similar trend for coffee and cacao.
The decrease explains the recent closure of several factories in Indonesia and their failure to cater to soaring demand for chocolate.
For existing businesses, the Indonesian Employers Association (Apindo) committee chairman for free trade agreements (FTA), Wahyuni Bahar, saw import and export duties as one of the industry’s main roadblocks.
