Indonesia Faces Coffee Crisis as Production Declines and Domestic Demand Rises

Indonesia Faces Coffee Crisis as Production Declines and Domestic Demand Rises

Indonesia is currently the world’s fourth largest producer and exporter of coffee. The country now finds itself on the brink of a disaster with harvests down and domestic consumption up. Known for its robusta beans, Indonesia cultivates higher quality arabica coffee, making it a significant player in the global coffee market, trailing only behind Brazil, Vietnam, and Colombia.

The political climate has gotten so bad for Indonesian coffee growers to the point that… Others have sounded the alarm that falling harvests might soon put Indonesia’s status as a net coffee exporter in jeopardy. As domestic consumption continues to grow, the possibility of Indonesia one day becoming a net-importer of coffee becomes more real.

Robusta beans constitute a large majority of Indonesia’s coffee exports, known for their punchy taste and muted acidity. The country has gained acclaim for its specialty arabica coffee, which is in high demand in specialty markets globally. The largest markets for Indonesian coffee exports are the US, Egypt, Malaysia, Japan, and India.

With growing domestic demand the tide is turning. At the same time, more Indonesians are drinking coffee than ever before, putting unprecedented stress on local producers. If production continues to decline while consumption rises, experts predict that Indonesia may soon rely on overseas suppliers to meet its domestic demand.

Workers at the Kawisari coffee plantation in East Java’s Blitar city, where coffee beans are sorted. They roast these beans to export perfection. We do recognize that they’re working their tails off. Factors such as climate change, pests and aging coffee trees have caused a sharp drop in production. Growers are now making difficult choices about production processes and the cost of sustainability measures to fight these threats.

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