Coordinating Minister Airlangga Appreciates Collaboration In Encouraging The Growth Of The Indonesian Coffee Industry

Coordinating Minister for the Economy, Airlangga Hartarto. (Photo: Doc. Coordinating Ministry for the Economy)

JAKARTA - The Coordinating Ministry for Economic Affairs welcomes the collaboration between Indonesian coffee industry players and the government in encouraging the growth of the coffee industry in Indonesia. This move will also aim to promote Indonesian coffee in the global market.

Coordinating Minister for Economic Affairs Airlangga Hartarto welcomed the arrival of coffee industry players at the Office of the Coordinating Ministry for Economic Affairs to coincide with International Coffee Day which falls on October 1, 2021. At this meeting, coffee industry players expressed their desire to cooperate with the government for the development of the coffee business in Indonesia. Indonesia and support in international coffee championships.

The government appreciates the commitment of Indonesian coffee industry players to continue to encourage the growth of the Indonesian coffee industry. The coffee industry has a major role in the absorption of labor in Indonesia, by empowering 1.86 million heads of farming families and 50 thousand general workers.

"Coffee is the third most important commodity in plantations after oil palm and natural rubber. Coffee also contributes 16.15 percent to plantation GDP," said Coordinating Minister Airlangga.

In the last 10 years, the Indonesian coffee industry has experienced a significant growth of 250 percent. Currently, Indonesia is the 4th largest coffee producer in the world after Brazil, Vietnam and Colombia. Indonesia's coffee area reaches 1.25 million ha with a total production of up to 761 thousand tons per year.

The government has provided support for the community to encourage the growth of the Indonesian coffee industry through the People's Business Credit (KUR) program.

"The realization of KUR for coffee in 2020 is IDR 1.2 trillion with 53 thousand debtors and the realization of KUR for the coffee industry until July 21, 2021 is IDR 661 billion with 25 thousand debtors," said Airlangga.

The coffee industry has great potential to continue to grow in Indonesia. The high interest of the community to develop a coffee business is one proof.

"One of the favorite training programs in the Pre-Employment Card is training to be a barista. This shows that young people are now very interested in the coffee industry," said Airlangga.

The government will continue to encourage the growth of the Indonesian coffee industry, both through food estate based on farmer corporatization, KUR, as well as important research to add value to coffee itself.

"We need to use international cooperation, both bilaterally, regionally, and internationally as optimally as possible to boost Indonesian coffee to become a leading export-oriented commodity in both traditional and non-traditional markets," Airlangga concluded.