Indonesia's Potential to Capitalise on Soaring Global Coffee Prices

Jakarta, CNBC Indonesia – Amid the threat of a ‘Godzilla’ El Nino causing a prolonged dry season that threatens global food production, the prices of a number of agricultural commodities have surged.

Citing Trading Economics data, arabica coffee prices are in the range of USD 7.36 per kilogram, or the equivalent of around Rp 132,480 per kilogram, a level still close to the highest price since January 2026. As the world’s fourth-largest coffee producer, the rise in coffee prices presents an opportunity for Indonesia to increase its profits.

CNBC Indonesia Commodity Expert Emmanela Egatirta said that increasingly low rainfall has led Brazil, the world’s leading coffee producer, to experience a decline in production, and as a result global coffee supply is under pressure.

For Indonesia, these conditions could increase the appeal of Indonesian coffee, supported by its distinctive flavour profile. However, Indonesia needs to make efforts to increase production in order to meet export demand, given that national coffee production currently stands at around 700,000 tonnes per year.

Indonesian coffee production still faces challenges related to weather and coffee plant pests. So what efforts does Indonesia need to make the most of rising demand for its coffee? For the full discussion, watch Andi Shalini’s conversation with CNBC Indonesia Commodity Expert Emmanela Egatirta on Squawk Box, CNBC Indonesia (Wednesday, 05/08/2026).