Jakarta (ANTARA News) - The Agriculture Ministry is resolved to make Indonesia a leading prime coffee and coffee product producer in the world by 2025, the ministry`s plantation affairs director, Achmad Mangga Barani, said here Wednesday.
He said Indonesia now ranked fourth in the world as a coffee producer and exporter although its coffee plantation area was the second largest in the world.
With a production of 792 kilograms of coffee per hectare annually, Indonesia is still under Columbia (1,220 kg/ha/year), Brazil (1,000 kg/ha/year) and Vietnam (1,540 kg/ha/year).
"Under the national coffee policy, a strategy is needed to make Indonesia a leading producer of prime coffee and coffee products in 2025," he said.
Coffee is one of Indonesia`s premier export commodities, a source of farmers` income and raw material for industries, he said, adding that coffee plantation had created job opportunities and helped develop areas where coffee was grown.
Of the 1.30 million hectares of coffee plantation in Indonesia in 2006, 95.9 percent was developed as people-based plantation business and the remaining 4.10 percent was managed by state plantation companies and private enterprises.
Data at the Plantation Director General showed Indonesia was currenly growing Robusta coffee on 1,30 million hectares of land and Arabica coffee on 177,100 hectares of land with a total production of 682,158 tons, 413,500 tons of the volume for exports valued at US$586,877 in 2006.
In 2007, national coffee production was recorded at 686,763 tons from 1.31 million hectares of land.
Barani said in the long term policy until 2025, the government was to raise the volume of the commodity for export and increase the added value of national coffee production in the hope it would have competitive power in the international market.
Indonesia no longer exports coffee as raw material but processed products of a quality as expected by consumers, he said.
The government had decided to maintain the area of 1.23 million hectares for Robusta coffee plantation and increase production to 865,000 tons and planting productivity of 1,000 kilograms/ha/year until 2025.
The government had also decided to increase the export volume to 505,000 tons and raise coffee farmers` income to US$3,000.
The government was expected to enlarge the plantation area for Arabica coffee to 236,000 hectares and increase production to 193,000 tons from 81,000 tons and planting productivity to 1,200 kg/ha/year and export of 135,000 tons.
For the purpose, the government was ready to issue investment policies which support the development of facilities and infrastructures including roads, bridges and ports as well as, transportation and communication means and guarantee availibity of energy sources.
For national coffee development, the government would also guarantee financial support both from banks and non-banking institutions. (*)