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.