The government has assigned the Palm Oil Plantation Fund Management Agency (BPDPKS) additional responsibilities to replant and develop the cocoa and coconut-based industries. This decision was made during an internal meeting led by President Joko Widodo at the Merdeka Palace, Jakarta, on Wednesday, July 10, 2024. This initiative aligns with the Ministry of Industry’s efforts to establish cocoa and coconut institutions to ensure the availability of raw materials, sustain the industry’s competitiveness, and increase value-added. The management of cocoa and coconut will be transferred to BPDPKS with the creation of two new deputy positions: Deputy for Cocoa and Deputy for Coconut. Various industry associations have welcomed this government decision. The Indonesian Cocoa Association (ASKINDO) commended the government for taking a significant step to enhance Indonesian cocoa productivity, positively impacting farmers' welfare and industry sustainability. Arief expressed confidence that increasing cocoa productivity would boost Indonesia's competitiveness in the global market, ensuring raw material availability and promoting downstream cocoa products. This move is crucial as 99% of Indonesian cocoa is cultivated by smallholders, which will significantly benefit their income.
The association emphasized the importance of implementing this plan through designated institutions, technical regulations, and providing quality planting materials near cocoa production centers, easy access to subsidized fertilizers, and competent field extension workers. The Indonesian Chocolate Bean to Bar Association (ACBI) Chairman Olivia Putri Prawiro noted that proper management of this initiative could positively impact farmers and the industry by enhancing productivity, product quality, and ensuring harvest absorption for farmers. ACBI hopes this policy will address the challenges faced by the cocoa processing industry, including the need to import a large portion of raw cocoa beans. Olivia emphasized the need for sustainable, transparent, and accountable implementation of this policy. ACBI supports any institutional strengthening and upstream cocoa schemes, aligning with their mission to empower fine flavor cocoa farmers focusing on fermentation for added value, sustainability, transparency, accountability, and farmer welfare. ACBI expressed gratitude to the government for this positive step, supporting long-term benefits for cocoa and coconut farmers and industries in Indonesia.
