Indonesian Kakao Contributes 3 Percent Of World Supply

BALI - Chairman of the Indonesian Kakao Council Soetanto Abdoellah said that the position of Indonesian cocoa commodities is still quite strong at the Asian level.

However, he acknowledged that globally Indonesia has now dropped to seventh as the largest cocoa producing country.

He explained that Indonesia's contribution was only about 3 percent of the world's cocoa supply. This figure is far from Ivory Coast and Ghana, which contributed 43 percent and 20 percent, respectively.

"Tatai Gading and Ghana, the world's two largest cocoa-producing countries," he said at the Kakao Contribution for the National State Budget & Economy, Monday, November 24.

Apart from Ivory Coast and Ghana, Indonesia's position is also below Ecuador, Cameroon, Nigeria, and Brazil, which control 7 percent share, 6 percent, 6 percent, and 4 percent, respectively.

Soetanto added that regionally, cocoa producing countries in Asia experienced a downward trend in production. On the other hand, producing countries in Africa and Latin America have shown a positive growth trend in the last fifteen years.

He added that Indonesia had previously become one of the main producers of cocoa in Asia, which has also experienced a decline in production, this decline could not be separated from the various challenges faced by the national cocoa sector.

Meanwhile, the Ministry of Finance's Plantation Fund Management Agency (BPDP) is focusing on the cocoa plantation rejuvenation program with a national target of 5,000 hectares by 2026.

Head of the General Division of BPDP Adi Sucipto explained that the rejuvenation target is part of the national target to improve the condition of cocoa plantations in Indonesia.

"One of the cocoa centers is in East Java, some are in Yogyakarta, some are in Bali, then some are from Sulawesi, the middle part," he said after discussions with the media in Kuta, Badung Regency, Bali, Monday, November 24.

He said that the determination of the rejuvenation target was also adjusted to the availability of cocoa seeds. In addition, BPDP is waiting for the completion of regulations from the Ministry of Agriculture, including derivative regulations.

Adi added that the implementation of the program really depends on the legality of the land and the willingness of farmers, considering that this program is voluntary.

Regarding the budget, he said there was no certainty about the number of allocations per hectare for cocoa. However, his party ensures that it will fully support the decision of the Steering Committee (Komrah).

"No matter how much the allocation is determined by the ministry, the BPDP fully supports. The previous example was 30 thousand hectares of palm oil, then it was changed to 60 thousand hectares, we will also support 60 thousand as long as it has been decided by the Komrah," he said.

Regarding funding sources, Adi emphasized that BPDP manages national APBN funds.

"So even though the income from cocoa is not what we want, as long as it has a contribution, it is uncertain that our program will be fully supported," he explained.

He added that currently BPDP is preparing two main programs for cocoa, namely rejuvenation and provision of infrastructure (sarpras).

Adi conveyed that for the training and development of human resources, the scheme will follow the pattern applied to palm oil commodities, including the recruitment process and the provision of scholarships for children who plant cocoa.

In addition, he added that BPDP is also waiting for an official rejuvenation proposal from the local government, including from the central part of Sulawesi.

"But we want certainty that their land is clean and clear," he said.

Adi said that in the next three years, BPDP plans to strengthen the support of infrastructure, including the provision of fertilizers.

"Because so far what my friends have faced is the price of fertilizer, which includes non-subsidized commodities, so it's quite high," he said.