Bandung, Indonesia Sentinel — The Indonesian Coffee Exporters Association (AEKI) is optimistic that national coffee exports will continue to see positive growth for the remainder of 2024. Data from the Central Statistics Agency (BPS) shows a strong increase in coffee exports, driven by both arabica and robusta varieties.
From January to August 2024, exports of unroasted arabica coffee (HS 09011120) reached Rp 5.5 trillion (USD $352.64 million), marking a year-on-year (YoY) increase of 39.44% compared to the same period last year. Similarly, unroasted robusta coffee (HS 09011130) exports surged 34.11% YoY to Rp 7.3 (USD $468.55 million) by August 2024.
Moelyono Soesilo, Head of the Specialty & Industry Department at AEKI, expressed confidence that Indonesia’s coffee export performance in 2024 will outshine last year’s figures. This optimism is bolstered by an increase in coffee bean supply during the second half of 2024, coinciding with the harvest season in key coffee-producing regions.
Impact of European Market and EUDR Regulations
Soesilo also highlighted a significant boost in shipments of Indonesian coffee to Europe in August and September, as businesses rushed to ship before the European Union’s Deforestation Regulation (EUDR) was set to take effect in early 2025. The EUDR, aimed at curbing deforestation linked to commodities such as coffee, has now been delayed by one year, providing exporters with more time to comply.
“Robusta coffee dominates our export activities, with the largest production areas located in South Sumatra, Bengkulu, and Lampung,” Soesilo said on Thursday, October 3 as stated from KONTAN.
Key Export Markets and Domestic Demand
Indonesian coffee exports are primarily directed to traditional markets including Japan, Malaysia, Egypt, Germany, the United States, and several Eastern European countries. However, despite the growing international demand, the domestic market remains a priority for local producers.
“National coffee producers are still focused on supplying the domestic market due to strong local demand. Exports usually occur when the local market cannot absorb the available supply at certain times,” Soesilo added.
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The one-year postponement of the EUDR regulation is seen as a positive development by the industry. AEKI believes this will help maintain steady demand from European countries, especially given the complexities and stringent requirements associated with the new regulations. “Only a few exporters are fully prepared for the EUDR,” Soesilo noted, emphasizing that the delay offers crucial breathing room for compliance.
As the global coffee market continues to evolve, Indonesia is well-positioned to maintain its status as a leading coffee exporter, benefiting from both increased production and favorable regulatory developments in key markets.
(Raidi/Agung)
