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Coffee Is Indonesia’s Leading and Best Export Commodity

Coffee Is Indonesia’s Leading and Best Export Commodity

Coffee Is Indonesia’s Leading and Best Export Commodity

  • Posted by globaladmin
  • On February 9, 2021
  • 0 Comments
  • Best Export Commodity, Best selling commodity coffee, Boost Indonesia's Exports, Coffee Is Indonesia's, Indonesian Coffee Export Market, Indonesian coffee is produced, Potential Chinese Market

The Ministry of Agriculture (Kementan) distributes free superior seeds to farmers in Sido Mulyo Village, Buah Batu District, Palangkaraya. Through the BUN 500 program, the Ministry of Agriculture wants to boost the productivity of superior commodities for export. Currently, the priority commodities are coffee, pepper, cloves, nutmeg, cocoa, rubber, coconut, cashew nuts, tea, and sugar cane.

 

Best selling commodity coffee

Coffee is one of the best-selling commodities on the world market. Even in the current crisis of America’s trade war with China, the export opportunities for this commodity are increasingly wide open.

Now we hear that India is enjoying drinking coffee again. Then during a visit to Colombia, there were told of Indonesian coffee more than a few times. That could be an opportunity for us to enter the market there, even this trade war is profitable. Along with increasing productivity, the government is also planning downstream plantations. In the future, Indonesia will not only sell raw goods but finished goods.

Downstream, besides increasing the selling value of the product, can also absorb labor and make farmers prosperous through farmer corporations so that later they can have shares in the industry.

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Asked to Boost Indonesia’s Exports to China

Indonesia’s trade balance began to be in surplus as of June 2020. However, Indonesia’s exports must continue to be increased by looking at the opportunities of the trade war between the United States and China.

The Presidential Special Staff for Economic Affairs, Ahmad Erani Yustika, said that so far President Jokowi has always emphasized that exports should continue to be increased. The former governor of DKI Jakarta wants to increase exports, including to China.

“The President wants trade performance to be improved, both by increasing exports to traditional and non-traditional countries and controlling imports, one of which is by initiating an import substitution industry.

 

Export Expanding Indonesian Coffee Export Market

Erani continued, the government through the Ministry of Trade has spurred exports by expanding the market. This step has more or less yielded results. Last year, Indonesia’s exports increased to non-traditional countries, such as Bangladesh (15.9 percent), Turkey (10.4 percent), Myanmar (17.3 percent), Canada (9.0 percent), and New Zealand (16, 8 percent).

This year, the government has focused on the African market, signing 12 agreements. Three of them are new target markets (since 2018), namely Mozambique, Tunisia, and Morocco.

The role of Indonesian coffee industry products.

Apart from several countries in Africa, the government has also spurred trade with Iran and Turkey. Then spur the performance of the industrial sector. The role of industrial products on export value is increasing and reaching above 70 percent in 2018. In order to continue to increase, the Ministry of Industry as a member of the Export Special Assignment Committee (KPKE) encourages from the side of financing through the Indonesian Export Financing Agency (LPEI).

 

Potential Chinese Market

Previously, the Director of Export Development Cooperation at the Directorate General of National Export Development at the Ministry of Trade, Marolop Nainggolan, previously said that Indonesia could take advantage of the potential of the Chinese market, which has a population of 1.4 billion people. To meet the needs of its people, of course, the Chinese government cannot handle it alone.

Indonesia’s trade balance for the period of June 2020 recorded a surplus of USD 0.2 billion. Even though it is a surplus, Indonesia’s exports must also be boosted by taking advantage of the trade war between the United States and China. A number of circles have asked the Minister of Trade, Enggartiasto Lukita, to explore this opportunity by directly lobbying the Chinese government.

 

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Indonesian coffee is produced for export by China

So what products can we offer? Yes, I think if there is anything to discuss, we need to go to China. So I think what we can export to us, we permit us to export there. The Trade Minister’s visit to China is also expected to bring positive results. So that Indonesia’s export cooperation with China continues to increase to improve the trade balance.

The important thing is that the Trade Minister returns home with the results. But the minister of industry must also go there to find out what Indonesia can produce for China to export, especially industrial goods, Indonesian technology goods, which are quite capable.

 

Contact and Information

By bringing quality Indonesian coffee beans to the global market, Global Coffee Indonesia is a part of the solution in promoting Indonesia commodities and community empowerment.

 

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