Indonesia's Coffee Industry Grows Rapidly, Fore Coffee Takes A Key Role

JAKARTA - Indonesia, as one of the world's largest coffee producers, has great potential in the coffee industry. The Indonesian coffee shop market share is estimated at US$2.1 billion, with CAGR growth of around 10 percent in the next few years. As one of the main producers of coffee in the world with very promising consumption growth, the Indonesian coffee industry does have enormous potential.

Fore Coffee, a leading affordable FhB coffee company in Indonesia, became one of the pioneers of the national coffee brand with digital applications that encouraged the growth of the national coffee industry by opening coffee outlets spread throughout Indonesia. Until September 2024, Fore Coffee managed to build 216 outlet networks spread across 43 cities in Indonesia.

Fore Coffee CEO, Vico Lomar, said Fore Coffee contributed to increasing coffee consumption in Indonesia with various innovations and strategies, from the coffee menu to online consumer services. For information, the Fore Coffee application has been downloaded by millions of users since its launch in 2018.

The presence of the Fore Coffee application is in line with the ideas and hypotheses of its founders, Willson Weather from East Ventures and Robin Boe and Jhoni Kusno from Otten Coffee, regarding the consumption patterns of people who are used to getting the food and drinks they want quickly, thanks to the development of the technology ecosystem in Indonesia.

The Fore Coffee application not only makes it easier for consumers to buy coffee, but also provides a more personal and interactive experience for each user. Since its establishment, Fore Coffee has dedicated its business to spreading Indonesia's coffee potential and culture," he said, Tuesday, December 10.

Vico Lomar sees that the coffee industry in Indonesia has promising prospects and has a very large opportunity to continue to improve. A report from the United States Department of Agriculture (USDA) entitled Indonesia: Coffee Annual projects that coffee consumption in Indonesia in the 2024/2025 period will increase by 10,000 bags to 4.8 million bags, from 4.45 million bags in the 2020/2021 period. (One coffee bag is equivalent to 60 kilograms).

According to USDA, this increase in consumption is driven by improving economic stability, especially in the food and beverage, hospitality, and other related sectors that support the growth of coffee consumption.

However, Vico Lomar noted that Indonesia is still facing challenges. Currently, Indonesia ranks below the Philippines with a ratio of more than 27,800 people per coffee shop. In addition, Indonesia's per capita coffee consumption is still relatively low, only 1.0 kilograms per year, placing it in second place in the world's lowest.

In comparison, data from Redseer Analysis (2023) noted that per capita coffee consumption in the country such as Finland reached 12 kg per capita or the United States of 5.0 kg per capita in 2023.

"This shows a big gap that can be filled and utilized by sellers, one of which is Fore Coffee," said Vico Lomar.

Not only contributing to developing the coffee industry in Indonesia, Fore Coffee has also made the country proud by expanding to Singapore since November 9, 2023 by opening the first outlet at Bugis Junction. This strategic step is in line with Fore Coffee's ambition and commitment to bring Indonesia's best coffee to a number of countries.

Fore Coffee's ambition to introduce Indonesian coffee abroad is also accompanied by a commitment to sustainability or Sust5in5ibility in accordance with world trends. For this reason, Fore Coffee also prioritizes environmentally friendly aspects in its business operations. One of the initiatives taken is business management that cares about environmental impacts, both in terms of production and packaging.

This is in line with the name of our company FORE coming from the word FOREST which means forest, where the philosophy is to grow fast, strong, high, while still creating life for the environment. We are committed to preserving nature and creating a positive impact on the environment through more sustainable measures, "said Vico Lomar.

Meanwhile, one of the business innovations that implements a sustainable principle is to introduce the use of environmentally friendly coffee packaging, namely packaging with the number 5: PP (Polypropylene) code.

This code indicates that the packaging used by Fore Coffee is safe for food and drinks. In addition, the coffee packaging can be recycled so that it contributes to reducing plastic waste that is not well managed.

As a result, with the use of more environmentally friendly packaging, Fore Coffee participates in the global movement to reduce the use of single-use plastics.

Not only packaging, Fore Coffee also introduces a coffee cup that can be reused or r Wayus5bl Coffee Coffee cups. This reusable glass is not only more efficient in terms of operational costs, but also a real step in reducing single-use plastic waste that is usually produced by the coffee industry. Consumers who enjoy coffee at Fore Coffee outlets can now bring their own glasses or buy glasses that can be used repeatedly, supporting environmental conservation efforts.

Fore Coffee also carries a sustainability mission by bringing the original eco-friendly mission to more than 50 percent of outlets in Indonesia and Singapore by recycling 8,800 kg of processed glass used plastic to be used as Fore Coffee outlet furniture.

As part of the launch of The Farmer Series last November, Fore Coffee emphasized its commitment to sustainability by presenting the 'Pak Tani Ngopi program in Jakarta'. This program gives appreciation to coffee farmers from West Java as well as opens up educational opportunities regarding better farming, marketing, and branding practices. Through this initiative, Fore Coffee not only connects producers with consumers but also helps farmers maximize their product potential in the global market.

"In dealing with the growing trend of coffee consumption, sustainability practices are our main key in maintaining long-term success for the Indonesian coffee industry, as well as strengthening the position of Fore Coffee as a market leader who cares about the future of the planet," concluded Vico Lomar.