Beyond wet-hulled Sumatra
83.0 - 84.0
$7.76 USD - $9.53 USD
Indonesian millennials and zoomers love coffee. The archipelago’s growth in production, twice as big as it was a decade ago and rising at a higher pace than other countries, is being absorbed by booming internal consumption. The number of coffee shops tripled from 2016 to 2019. The country’s coffee retail market is expected to keep growing faster than any in Europe and is flooded with cash. Google and you’ll find that, in 2019, rapper Jay-Z and tennis player Serena Williams invested millions of dollars in an Indonesian coffee chain. All this is having an impact on production. These very millennials and zoomers are bringing their passion from the coffee shop to their families’ farms and changing how coffee is produced and processed in the country.
Farmers also contend against heavy rains and wind at the fruit development stage, which makes them fall to the ground and compromises yields. The output is also low due to ageing plantations in need of renovation, lack of inputs and poor farming practices. The traditional processing method, known as wet-hulling or giling basah, can result in a large number of defects and has developed a bad reputation among high-end buyers.
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Despite its internal challenges, young Indonesians and small businesses are driving the country’s efforts towards quality. There is a lot of potential to add value to Indonesian coffee to make it a more attractive crop. And during Covid lockdowns, more young people returned to their family homes and started engaging in farming, which can accelerate that trend.
Sources: Bright Java, An Analysis of the Global Value Chain for Indonesian Coffee Exports, Global Coffee Report magazine, The Jakarta Post, USDA, Sustainable Coffee Challenge, Global Coffee Platform
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