Can Indonesia's Local Matcha Compete with Japan's?
Martabak matcha, klepon matcha, cendol matcha, even risol matcha—the craze for the Japanese green powder shows no signs of abating in Indonesia. Yet, behind this growing trend, most of the matcha consumed in the country is still imported. As one of the world’s largest tea producers, can Indonesia carve out a space in a market long dominated by Japan?
No single source can pinpoint exactly when matcha first arrived in Indonesia. However, some enthusiasts recall first encountering the green powder through global coffee chains in the early 2000s, typically served as a milk-based drink recommended for non-coffee drinkers. While commonly known as a beverage mixer, matcha is essentially finely ground green tea leaves. But not all green tea powder qualifies as matcha. The tea leaves for matcha are cultivated and processed differently from ordinary green tea, a method that produces its characteristic umami flavour and labels it a healthy drink, high in antioxidants, beneficial for metabolism, and providing a calm, focused effect.
Its striking, eccentric green colour, combined with its unique taste and health benefits, encourages people to share their tasting experiences on social media. Matcha’s popularity has since expanded far beyond premium cafés, appearing at roadside stalls in small towns. Its use has become increasingly varied, no longer limited to drink mixes but branching into various food creations. Merisha Ayu, CEO of Uji Matcha, a café established in 2017, noted that the market has grown significantly, reflected in her café’s increasing matcha imports year on year. “I believe matcha will continue to boom in the future, especially with the current lifestyle and market where people are more health-conscious and aware of what they consume,” she said. The growth potential in Indonesia remains vast, with matcha now also penetrating the beauty industry for skincare and perfumes.
Indian market research firm Mobility Foresight predicts that Indonesia’s matcha market will see an average annual growth rate of up to 14.8% until 2031, driven by health awareness, Instagrammable café culture, and product innovation. Globally, market growth is predicted at 7% to 9% until 2033. Seeing this expanding market, local producers like Rizal Firdaus in Ciwidey, West Java, began experimenting a decade ago. Having been in the tea business for decades, Rizal started producing matcha in 2016, noting that at the time, no one in Indonesia was making it; only green tea powder was available, with matcha imported from Japan. “I thought, Indonesia has plenty of tea, why not try making matcha here?” he said.
After eight years of research and development, Rizal is confident in marketing his product. He identified suitable tea gardens and guided farmers and pickers to produce the best raw materials, as matcha requires special treatment. About two weeks before harvest, the tea plants must be shaded to reduce sun exposure, increasing L-theanine for umami flavour and boosting chlorophyll for a bright green colour. Harvesting is done manually, selecting only the best buds. The leaves are then processed into tencha, the raw material for matcha, and ground using a stone mill designed to resemble those in Japan, though the stone is sourced from Majalengka. The resulting powder is sifted for extra fineness. Rizal’s matcha is currently culinary grade, designed for mixing with milk or sugar. He acknowledges that compared to Japanese matcha of the same category, his product has a coarser texture and a more astringent, bitter taste, though this diminishes when mixed with milk. Nonetheless, his “Indo matcha” has found its own market, with his Ciwidey factory already supplying local cafés in Bandung.