In January 2025, Indonesia witnessed a significant surge in cocoa imports, with the value reaching US$0.3 billion. This marks a 119% increase compared to December 2024's import value of US$0.14 billion. The Acting Head of Statistics Indonesia (BPS), Amalia Adininggar Widyasanti, highlighted this substantial month-to-month growth during a press conference on February 17, 2025.

A considerable portion of these imports, amounting to US$136.79 million, originated from Ecuador. The imported commodities primarily consisted of cocoa beans, whether whole or broken, raw or roasted, and fermented. This strategic importation aims to bolster Indonesia's cocoa processing industry, ensuring sufficient raw materials to meet both domestic and international demand.

Declining Domestic Cocoa Production

Indonesia's reliance on cocoa imports can be attributed to a downward trend in domestic cocoa production over recent years. According to the "Indonesian Cocoa Statistics 2023" report, the country's cocoa plantation area and production have been decreasing since 2019. In 2019, the plantation area was recorded at 1,560.95 thousand hectares with a production of 734.8 thousand tons. By 2023, these figures had declined to 1,393.39 thousand hectares and 632.12 thousand tons, respectively. Factors contributing to this decline include aging cocoa trees, limited access to high-quality seeds, and challenges in pest and disease management.

Cocoa Exports: A Mixed Outlook

Despite the increase in imports, Indonesia's cocoa and its derivative product exports have shown resilience. In January 2025, export values reached US$320.52 million, reflecting a 3.4% increase from December 2024. The primary export destinations were the United States (US$71.66 million), India (US$47.49 million), and China (US$35.34 million). The export portfolio predominantly comprises processed cocoa products such as cocoa butter, cocoa fat and oil, cocoa powder, and cocoa paste.

However, the global cocoa market is experiencing volatility. In February 2025, the Indonesian Ministry of Trade reported an increase in the reference price for cocoa beans, setting it at US$11,102.84 per metric ton, a 5.24% rise from the previous month. This price hike is largely due to increased global demand coupled with a decline in production, especially from major producers in West Africa. Such global dynamics could pose challenges for Indonesian exporters, potentially affecting their competitiveness in the international market.

Strategic Implications for Indonesia's Cocoa Industry

The current landscape presents both challenges and opportunities for Indonesia's cocoa industry. The surge in imports underscores the necessity to support the domestic processing sector, ensuring it remains robust and capable of meeting export demands. However, the declining domestic production signals a pressing need for revitalization efforts.

To address these issues, strategies could include rejuvenating aging plantations, providing farmers with access to superior seeds, and enhancing pest and disease control measures. Collaborative efforts between the government, industry stakeholders, and farming communities are essential to revitalize the cocoa sector. Such initiatives would not only reduce dependency on imports but also strengthen Indonesia's position in the global cocoa market.