Indonesia, one of the world’s largest coffee producers, continues to show promising performance in the coffee processing industry.

However, despite positive outcomes, Indonesia's global market share for coffee remains limited. Wakil Menteri Perindustrian (Deputy Minister of Industry), Faisol Riza, highlighted the importance of innovation to elevate Indonesia’s coffee industry to global prominence.

In 2024, the nation’s processed coffee production reached 1.04 million tons, with a utilization rate of 77%. The export of processed coffee performed well, reaching 196.8 thousand tons valued at USD 661.9 million.

However, Riza emphasized that the share of Indonesian coffee in global markets is still relatively small despite these results.

Indonesia's Coffee Diversity: A Competitive Advantage

Indonesia’s coffee sector stands out due to the diverse varieties of coffee it produces.

The country offers over 54 types of coffee, each with unique flavors, shaped by varying regional conditions, altitudes, and soil characteristics.

This diversity presents a significant opportunity for industry players to develop distinctive coffee products, contributing to Indonesia's global competitiveness.

“We know that the global coffee industry is highly competitive. Therefore, we must continue innovating, embracing new technologies, and constantly learning,” said Riza.

He further stressed the importance of a deep understanding of coffee flavors and global markets to ensure Indonesia's growth as the world’s largest coffee producer.

Rising Domestic Consumption and Market Growth

Indonesia’s domestic coffee consumption has also been on the rise, with a total national consumption of 1.03 kilograms per capita, amounting to 288 thousand tons.

The coffee market is projected to grow at a rate of 3.61% annually between 2024 and 2029, presenting significant opportunities for investment.

This growth is especially noticeable in sectors such as specialty coffee, ready-to-drink (RTD) coffee, and derivative products like coffee capsules and flavored syrups.

The popularity of coffee shops has surged, with the number of outlets nearly tripling in the past three years.

This trend reflects a growing interest in coffee culture, particularly among younger generations.

According to the Central Bureau of Statistics (BPS), over 53% of Indonesia’s population consists of Generation Z and millennials, key drivers behind the increasing demand for modern coffee.

International Coffee Showcase and Indonesia’s Global Presence

Indonesia is making strides to gain global recognition by hosting the World of Coffee 2025, an international coffee expo.

Taking place from May 15-17, 2025, at the Jakarta International Convention Center (JICC), the event will feature over 400 coffee brands and industry professionals, including farmers, baristas, and roasters from countries such as India, the United States, and Vietnam.

“This is truly a proud moment for us. I hope that the World of Coffee 2025 will help our coffee industry rise to prominence and take a significant share in the global coffee trade,” said Riza.

Government Support and Strategic Initiatives

To further support the growth of the coffee sector, the Indonesian Ministry of Industry has introduced several strategic initiatives.

These include training programs on Good Manufacturing Practices (GMP), support for the adoption of Industry 4.0 technologies, and fiscal incentives like the super deduction tax for companies investing in research and development, vocational training, and machinery upgrades.

These measures have proven to improve production efficiency by up to 30% and product quality by 25%.

These efforts are part of the government’s commitment to strengthening Indonesia’s coffee industry from production through to export, boosting value-added opportunities, job creation, and sustainable export growth.

PHOTO: KEMENPERIN

This article was created with AI assistance.