Kakao Downstream Exports Increase, Indonesia Becomes A Global Chain Supplier

Container illustration (Photo: Doc. Antara)

BALI - The Ministry of Industry (Kemenperin) is focused on continuing to implement the national downstream policy of the domestic cocoa processing industry in order to increase added value, strengthen industrial structure, and create community welfare.

The development of the downstream cocoa processing industry itself is directed to produce cocoa powder, chocolate fat, chocolate food and drinks, cocoa-based functional supplements and foods, as well as the development of marine chocolate.

Moreover, Indonesia's current potential is the third largest cocoa processing country in the world that produces various processed cocoa products, such as cocoa pasta/liquor, cocoa cake, cocoa butter and cocoa powder.

Director General of Agro Industry of the Ministry of Industry Putu Juli Ardika said that some of these products were further processed domestically (about 20 percent), and the rest were exported to more than 96 countries on five continents.

"The export of intermediate products has made Indonesia a global chain supplier with a contribution of around 9.17 percent of the world's needs," Putu said in a written statement, quoted on Friday, August 25.

According to Putu, the increase in the export value of processed cocoa is supported by a number of multinational corporate investments. "This is the impact of the policy of exporting cocoa beans through the Regulation of the Minister of Finance Number 67 of 2010," he said.

From this investment, initially the capacity of the cocoa processing industry was 560,000 tons per year, increasing to 739,250 tons per year.

In addition, cocoa seed exports in 2013 reached 188,420 tons (worth 446 million US dollars) or decreased to 24,603 tons (worth 64 million US dollars) in 2022. In contrast, the export volume of processed cocoa products increased from 196,333 tons (a value of 654 million US dollars) in 2013 to 327,091 tons (a value of 1.1 billion US dollars) in 2022.

"Since 2015, our processed cocoa exports have always been above 1 billion US dollars. In fact, Indonesia has become a global processed cocoa player with our cocoa butter export position number two in the world after the Netherlands," said Putu.

Furthermore, Putu said that five years ago the composition of processed cocoa exports between (intermediate products) was 85 percent and 15 percent were further processed domestically into final products in the form of chocolate-based food and drinks.

"Currently, the composition of processed chocolate production in the country has increased to 20 percent. This means that processed cocoa products in the country are experiencing strengthening or further downstreaming occurs," he added.