Indonesia is the fourth largest producer of coffee beans in the world. The Ministry of Agriculture (Kementan) according to International Coffee Organization (ICO) data stated that in 2019/2020, the total world coffee demand reached 9.8 million tons per year, while the total domestic coffee production was only limited to 686 thousand tons. Brazil, Vietnam, Colombia, are the three largest coffee producing countries in the world. In order to increase the quantity and quality of domestic coffee beans, the government through the Ministry of State-Owned Enterprises (BUMN) launched the Kopi Nusantara Project Management Office (PMO) Program. Dwi Sutoro as Marketing Director of PTPN III (Persero) Nusantara Plantation Holding, is trusted to be the Chairman of PMO Kopi Nusantara. Currently PMO Kopi Nusantara has 9 pilot projects in six regions spread throughout Indonesia. “The total land that we have facilitated so far is more than 6,500 hectares managed by 2,500 farmers. We hope that the harvest from the land will be used to meet the needs of the domestic and international markets," said Dwi Sutoro, Tuesday (21/6/2022). According to Sutoro, Indonesia's opportunity to become a key player in the international coffee industry is wide open, because Indonesian coffee beans, with good on-farm and off-farm processes, have premium taste and quality. This potential needs attention, especially regarding intellectual property protection instruments, in this case Geographical Indications (GI).
Currently, there are several challenges in the coffee supply chain system in the world. Some of them are tariff barriers, intense competition and requirements to enter the global market, as well as several sustainable certification requirements. However, Dwi Sutoro is optimistic that through the synergy and cooperation of all parties under the umbrella of PMO Kopi Nusantara, Indonesia will be able to improve the quality and quantity of coffee beans. "PMO Kopi Nusantara develops various mentoring programs and encourages the creation of a sustainable business ecosystem with the target of increasing the income and welfare of coffee farmers in the country," said Dwi Sutoro. Furthermore, Dwi Sutoro stated that assistance to farmers is an absolute step to increase coffee production capacity, because 96.1% of coffee land is owned by smallholder farmers. PMO Kopi Nusantara implements a holistic strategy, in the process of assisting farmers. Starting from the aspect of sustainable crop cultivation, information and assistance in agricultural cultivation, digital farming and agricultural mechanization, access to capital and protection of agricultural risks, social development of farming communities and inclusive businesses, as well as agricultural market partnerships (Farm to Market Partnership). Meanwhile, the expert staff of the Minister of BUMN for Global Value Chains, Reynaldi Istanto, said that this cooperation in the business ecosystem needs to be replicated immediately. According to Reynaldi, in this mentoring process, PMO Kopi Nusantara involves BUMN producers of fertilizers, plantations, banking, insurance, trade, and local governments. "Apart from the government, we also encourage the private sector to participate in this initiative. We need to replicate this in many places in Indonesia. PMO Kopi Nusantara seeks to improve the domestic coffee supply chain so that it can become a market leader in the international market, " said Reynaldi.
