AEKI starts Rp 1b cofee-drinking drive

AEKI starts Rp 1b cofee-drinking drive

Rendi A. Witular, The Jakarta Post, Jakarta

Indonesia is one of the world's major coffee producers, but
few of its more than 210 million population drinks coffee
regularly.

This has had an adverse effect on local coffee producers,
particularly when, like now, international coffee prices are low.

The Association of Indonesian Coffee Exporters (AEKI) is
hoping to encourage coffee-drinking culture here. It has recently
launched an ambitious Rp 1 billion (US$110,742) coffee-drinking
campaign to help boost domestic demand in the world's fourth most
populous country.

AEKI chairman Nuril Hakim Yohansjah told The Jakarta Post on
Friday the association was aiming to increase the country's per
capita annual coffee consumption to 1 kilogram from the current
0.6 kg.

According to one estimate, Finland has the largest per capita
coffee consumption of 11.6 kg per year, while in Asia the largest
is Japan with around 2.6 kg per year.

Nuril said that Indonesia's per capita consumption was still
slightly higher than that of China.

He said the higher per capita consumption should increase
domestic demand to around 200,000 tons this year from around
120,000 tons last year.

Indonesia produced some 500,000 tons of coffee last year, of
which most of it was exported.

Under the coffee-drinking campaign, AEKI has set up coffee
booths in crowded public areas like bus stations, markets, ports
and provides free cups of coffee to entice people into drinking
coffee regularly.

"At the moment we are still informing the public about the
campaign in Lampung and Jakarta. Hopefully, we can expand across
the entire country soon," said Nuril.

The province of Lampung accounts for 75 percent of Indonesia's
coffee output.

He added that if successful, the campaign program would be
continued next year.

But some doubt the expensive campaign will entice people to
drink coffee.

"I don't drink coffee because I don't see any benefit in
drinking it. I prefer tea," said young lawyer Erri Tjakradirana.

David Lumbong, a bank executive and coffee freak, welcomed the
program to boost coffee drinking, but doubted its success.

"For me, coffee is something to be taken in the morning, with
a smoke, while browsing the newspaper, or at those sidewalk
stalls," said David.

David welcomed AEKI's plan to promote coffee drinking but
doubted its success because Indonesia is more of a tea-drinking
culture.

But AEKI hopes a new coffee culture could bring a glimmer of
hope to domestic producers -- who grow 90 percent robusta and 10
percent arabica -- through the possibility of a share of the
growing market, by encouraging consumption of domestic blends.

The country's coffee industry has been hit by low prices in
the overseas market due to oversupply.

The oversupply was caused by abundant stock from the world's
largest coffee producers, particularly Brazil and Vietnam.

Since the harvest season in May this year, the price of the
world's coffee has dropped from 90 U.S. cents per kilogram to 41
U.S. cents.

The low price has also discouraged many local coffee-growers
from taking proper care of their crops, which has resulted in a
drop in the country's coffee output.

Efforts to boost coffee prices in the international market by
launching a retention scheme have failed due to lack of money.