Cocoa Plantations in Africa Converted to Mining as Global Cocoa Prices Rise

Jakarta — Indonesia’s Deputy Agriculture Minister (Wamentan) Sudaryono, commonly known as Mas Dar, has stated that global cocoa prices are rising due to reduced supply from various countries.

Mas Dar said the decline in supply stems partly from cocoa plantation land in Africa being converted for mining operations.

“Cocoa prices are currently high because in other cocoa-producing regions globally, such as Africa, agricultural land is being repurposed for mining,” Mas Dar said when met at the Agriculture Ministry office in Jakarta on Thursday (12 March 2026).

Armed conflicts have also contributed to rising cocoa prices in the global market.

According to Mas Dar, the decline in cocoa supply from Africa creates a market opportunity for Indonesian cocoa, which ranks among the nation’s flagship commodities.

“This is an opportunity for us, as cocoa is also a key commodity for our country. This is very important,” said Mas Dar.

The government is channelling Rp9.95 trillion for the rejuvenation of several commodities over a three-year period. This funding is distributed to farmers across the timeframe.

The funding aims to drive increased production of plantation commodities with significant impact on farmers and strong global market demand.

“We rejuvenate the seeds to be appropriate and standardised, with proper management practices, resulting in higher productivity and greater farmer prosperity,” Mas Dar explained.

Mas Dar stated that factory development does not use State Budget (APBN) funds, but rather capital from the Danantara Investment Management Board (BPI) and the private sector.

“Danantara leads the initiative, involving the private sector and farmers. Total investment in this downstream industrialisation is Rp371 trillion,” said Mas Dar.

Products from plantations are processed into finished goods and sold to export markets at significantly higher prices than raw materials.

The project, involving Rp371 trillion in investment, encompasses plantations and the development of an integrated poultry industry ecosystem.

“We increase production, but this must be paired with industrial development. The industrial component uses an investment scheme structure, not APBN funding,” Mas Dar concluded.