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Indonesia
AsiaSoutheast Asia

Indonesia to boost coffee output in anticipation of Chinese boom

  • Farmers in the No 3 producer of robusta expected to reap 50 to 60 per cent more beans within next five years
  • China’s consumption surged more than nine-fold in the past decade, thanks to ‘coffee culture’ driven by western lifestyles of young people

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Coffee beans being packed for export in Medan in Indonesia in April 2013. Photo: Reuters
Bloomberg

The world has more than enough coffee, and Indonesia is looking to add to the glut.

The coffee industry in the No 3 producer of robusta is on a mission to boost output at a time when production is soaring and prices are tumbling. Farmers are expected to reap 50 to 60 per cent more beans within the next five years, said Pranoto Soenarto, deputy chairman of the Association of Indonesian Coffee Exporters and Industries.

“I’m calling all the stakeholders, especially roasters, to work together to help the farmers” with funding and increasing productivity, Soenarto said in an interview on the sidelines of an industry seminar in Bandung.

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An increase in supply from the Southeast Asian nation may pressure robusta futures that have tumbled to the lowest since 2008, when trading began. Indonesia will also be vying with producers from Vietnam and Brazil, which is already the king of arabica coffee and may be poised to claim that title for robusta beans too.

Workers at a Luckin Coffee branch in Beijing in May 2018. Photo: EPA-EFE
Workers at a Luckin Coffee branch in Beijing in May 2018. Photo: EPA-EFE
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The Indonesian group is preparing a road map for boosting yields with several other stakeholders including the Indonesian Coffee and Cocoa Research Institute and the agriculture ministry.

The plan envisages helping farmers to properly use fertiliser and good-quality seeds, finding ways to protect crops from pests and diseases and providing financial assistance.

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