Optimizing the potential of Indonesian coffee: a dual market approach

Abstract

AbstractIndonesia, the fourth-largest coffee producer in the world, mainly produces the Robusta variety, while also being well-known for producing high-quality Arabica coffee beans. This is largely due to the government’s promotion of the cultivation and production of Arabica coffee beans. While the Arabica variety can bring significant economic gains, given the characteristics of Indonesian specialty Arabica coffee beans, there are many challenges in further increasing its production. Geographical indications have been utilized by coffee industry stakeholders to further differentiate coffee products and highlight their origins. This study found that most Indonesians drink coffee regularly, with higher demand for specialty coffee in urban areas. With improvements in cultivation systems and post-harvest processes, higher productivity levels can be achieved for both Arabica and Robusta coffee varieties. The Arabica variety has high potential to compete with other well-known specialty coffees in the international market. Simultaneously, the production yield of Robusta coffees should be further increased, as there are increasing trends in domestic coffee demand.

Keywords

• Single-origin coffee
• Indonesian coffee
• coffee productivity
• coffee supply chain
• geographical indications
• Michael Hardman, University of Salford, UK