Indonesia Targets $5.5 Billion in Coffee Exports by Boosting Production and Farmer Welfare
Indonesia Targets $5.5 Billion in Coffee Exports
Bener Meriah, Aceh. Indonesia aims to more than double the value of its coffee exports to Rp 100 trillion ($5.5 billion) over the long term by boosting productivity, expanding the use of high-yield seedlings, and strengthening the country’s coffee industry from the farm level, Agriculture Minister Andi Amran Sulaiman said on Tuesday.
Amran announced the target during a visit to a coffee seedling center in Bener Meriah, Aceh, where he praised the international reputation of the region’s renowned Gayo coffee.
“Gayo coffee is already known worldwide,” Amran said. “I remember meeting former US President Bill Clinton during a visit to Mexico and Argentina, and the conversation turned to Gayo coffee. It made me proud because it showed that Gayo coffee has earned global recognition. That is why we must continue supporting coffee farmers, especially in Aceh.”
The government has allocated a coffee development program covering approximately 17,000 hectares in Aceh, supported by the distribution of 17 million coffee seedlings.
Amran said coffee has the potential to become one of Indonesia’s leading agricultural export commodities.
“Coffee exports are currently worth around Rp 40 trillion. We want to increase that to Rp 100 trillion because the potential is enormous,” he said.
He added that the recent rise in coffee prices – to about Rp 110,000 per kilogram, compared with roughly Rp 50,000 previously – provides an opportunity to improve farmers’ incomes.
The government plans to increase production while improving marketing and distribution systems so that a greater share of the commodity’s value is retained by coffee growers.
Amran also said Indonesia is strengthening its national export system to improve the country’s bargaining position in global commodity markets.
The longer-term objective, he said, is for Indonesia to move beyond supplying raw agricultural products and play a greater role in influencing prices for key export commodities, including coffee.
“We want Indonesia, as a major producer, to have stronger bargaining power. More of the value created by our commodities should benefit farmers and the country, ultimately improving people’s welfare,” he said.
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