The Indonesian Export Financing Agency (LPEI) encouraged an increase in Indonesian coffee exports. LPEI Executive Director Rijani Tirtoso said that coffee is one of Indonesia's leading commodities. LPEI has a Coffee Cluster Foreign Exchange Village program which includes assistance to farmers with a focus on strengthening the production process and expanding market access with the aim of increasing the production capacity of coffee farmers and expanding the coffee marketing area to the export market. "Our collaboration with the Ministry of Villages, Development of Disadvantaged Regions, and Transmigration and Astra will provide assistance to 7,541 farmers in 82 villages located in Aceh, West Java, Central Java, East Java, Bali and East Nusa Tenggara," explained Rijani Tirtoso in his statement, Tuesday (1/11).
Based on data from the Central Statistics Agency (BPS), the value of Indonesian coffee exports (HS 0901) during January-August 2022 was recorded at USD 698.18 million, an increase of 45.52% compared to January-August 2021 (year on year/yoy). Meanwhile, in terms of volume, it increased by 16.60% (yoy) or reached 256.22 thousand tons in the same period. This increase was supported by rising commodity prices and increasing demand for coffee. The destination countries for Indonesian coffee exporters include the United States as the main destination country with an export value of USD 183.69 million or 55.63% of the total national coffee exports in the January-August 2022 period. Egypt is ranked second as the destination country for Indonesian coffee exports with a value of USD 50.47 million. The next largest destination for Indonesian coffee exports is Belgium with a value of USD 45.17 million. Currently, Robusta coffee still dominates Indonesia's coffee exports. Because this type of coffee bean is the most widely planted and has a distinctive taste with the smell of tobacco. However, the aroma of Indonesian Arabica coffee is no less fragrant in the world. Gayo and Mandailing coffee are some of the most popular types of coffee in America. Even West Java Arabica coffee is one of the most expensive coffees in the world. The LPEI Coffee Cluster Foreign Exchange Villages are located in Kintamani, Pupuan, Garut, Takengon, Semarang, Temanggung, Bondowoso, Banyuwangi, Malang and East Manggarai. The foreign exchange village program is a long-term program to adjust the current gap with key indicators of community empowerment. Head of the Indonesia Eximbank (IEB) Institute Division, Rini Satriani said that Indonesia is one of the world's largest coffee producers, with total production in 2020 recorded at 762.38 thousand tons, an increase from 752.51 thousand tons from the previous year. "Of the total 762.38 thousand tons, the majority of national coffee production is produced from the provinces of South Sumatra (198.95 thousand tons), Lampung (117.31 thousand tons), North Sumatra (76.60 thousand tons), Aceh (73, 42 thousand tons) and Bengkulu (62.28 thousand tons). Meanwhile, the regions with the largest distribution of national exporters are in North Sumatra, DKI Jakarta and Aceh," Rini explained.
