Indonesia is intensifying efforts to transform its coffee industry into a major export growth engine, with the government setting an ambitious target of increasing annual coffee export earnings to Rp100 trillion (approximately $6.25 billion) through higher production, expanded downstream processing, stronger export networks and greater value addition across the supply chain.
The strategy forms part of a broader effort to strengthen Indonesia's position in the global coffee market while increasing returns for growers through productivity improvements and enhanced processing capabilities. The long-term vision also includes positioning the country as a stronger price influencer in international commodity markets rather than remaining primarily a supplier of raw agricultural products.
The roadmap was outlined by Agriculture Minister Andi Amran Sulaiman during a visit to a coffee nursery in Pintu Rime Gayo District, Bener Meriah Regency, Aceh, where he reviewed the quality of planting material that will support the next phase of plantation development. According to the minister, Indonesia currently generates approximately Rp40 trillion ($2.5 billion) in annual coffee exports, with substantial room for expansion as production capacity and value-added processing continue to improve.
The government's coffee development programme in Aceh includes support for approximately 17,000 hectares of plantations through the distribution of 17 million superior coffee seedlings. The initiative is expected to significantly improve plantation productivity while creating higher and more stable incomes for coffee-growing communities.
Regional authorities estimate the programme could generate an additional Rp4 trillion (approximately US$250 million) in farmer income once the new plantations reach productive capacity, reinforcing coffee's importance as a key driver of rural economic development.
Indonesia is also seeking to build on the international reputation of Gayo coffee, one of the country's best-known specialty coffee origins. Global recognition of the premium Arabica variety continues to support Indonesia's ambition to expand exports into high-value international markets while strengthening the country's brand in the specialty coffee segment.
The government's export strategy comes at a time of favourable market conditions. Domestic coffee prices have risen sharply over the past year, providing stronger incentives for growers to invest in productivity improvements and plantation expansion while supporting higher farm incomes.
Alongside production growth, Indonesia is preparing a series of trade reforms aimed at improving the competitiveness of its agricultural exports. The government intends to strengthen export systems, encourage greater domestic processing and capture more value within the country, enabling producers to secure a stronger negotiating position in international markets.
By integrating improved genetics, plantation modernisation, downstream investment and export diversification, Indonesia aims to establish a more resilient and globally competitive coffee industry capable of generating higher export revenues while delivering greater economic benefits to farmers and rural communities.
