KBRN, Indonesia: Indonesia’s cocoa plantations are facing multiple challenges, causing a steady decline in cocoa production over the years. This drop in output has forced several chocolate manufacturers to halt operations due to shortages of raw material.

“Thirty-one chocolate factories in Indonesia have already closed, leaving only 19 to 21 operational factories. While artisan chocolate is growing, large-scale production is declining sharply,” Adi Sucipto, General Division Head at the Indonesian Cocoa Fund Management Agency (BPDP), during a media visit on “Cocoa’s Contribution to the State Budget and National Economy” in Tabanan, Bali, on Monday, November 24, 2025.

Adi attributed the decline in cocoa production partly to aging cocoa plants. He also noted that Indonesian consumer preferences lean toward sweetened cocoa products, while the majority of local production focuses on dark cocoa.

“BPDP has been mandated to rejuvenate cocoa plantations to boost production again,” Adi said. The agency aims to replant cocoa trees across 5,000 hectares by 2026.

However, Adi emphasized that replanting cocoa is not a straightforward process. Unlike palm oil plantations, cocoa faces several development obstacles, including the availability of seedlings. “The biggest challenge now is the limited availability of seedlings. The Cocoa Center only has 5,000 seedlings available for the 2026 replanting plan,” Adi explained.

Additional hurdles include regulatory requirements mandating DNA testing of cocoa seedlings. “Even if seedlings are available, we cannot plant them immediately because we need to verify their origin,” he added.

High fertilizer costs also hinder production. On the export side, external challenges include regulations such as the European Union’s Deforestation-Free Regulation (EUDR).

“The EUDR is often used as a ‘smear campaign,’ linking Indonesian plantation commodities to deforestation issues. These campaigns frequently slow down the development of Indonesia’s cocoa industry,” Adi stressed.

Beyond plantation rejuvenation, BPDP is also tasked with downstream processing of cocoa to increase export value and boost government revenue.

“Cocoa plantations contributed IDR 3.7 trillion in taxes and approximately IDR 240 billion in export duties to the state budget in 2024,” said Nurlaidi, a Senior Analyst at the Directorate of Non-Tax State Revenue Strategy, Finance Ministry.

In 2025, export duties on cocoa have already reached IDR 150.7 billion. Since 22 October 2025, the government has implemented an export levy on cocoa. “At present, the export levy amounts to IDR 48.8 million. This revenue will be reinvested into the cocoa sector for plantation development, tree rejuvenation, research, and promotion,” Nurlaidi added. (Diffa Sephiawardhani/Sri Wahyuni)