Indonesia Pushes Coffee Industry to Expand in Global Markets

RRI.CO.ID, Jakarta - Indonesia’s coffee processing industry still holds significant potential for expansion. The government is promoting increased capacity utilization, product diversification, and market access to strengthen competitiveness.

Indonesia is the world’s fourth‑largest coffee producer, with production projected to reach around 834,000 metric tons in 2025. National processed coffee products have also reached more than 80 countries, opening opportunities for further export expansion.

Industry Minister Agus Gumiwang Kartasasmita reaffirmed the government’s commitment to strengthening the national coffee industry's competitiveness and enhancing its position in the global market.

“Coffee is a commodity with strength across the entire value chain, from upstream to downstream. Our challenge ahead is to ensure that this strength can be converted into greater added value through stronger processing industries, product innovation, increased productivity, and expanded market access,” Minister Agus said in a statement in Jakarta on Tuesday, September 8, 2026, as quoted on the Ministry’s official website.

The coffee processing industry has an installed capacity of approximately 1.81 million metric tons, but production in 2025 reached only 928,000 metric tons, resulting in a capacity utilization rate of 51 percent. The government aims to increase the utilization rate to 86.6 percent by 2029.

The Ministry’s Acting Director General of Agro‑Industry, Putu Juli Ardika, said increasing capacity utilization is a priority for optimizing installed capacity. “Strengthening the supply of raw materials, human resources, technology, research and development, and market access must be carried out in an integrated manner,” Putu said.

In terms of exports, Indonesia is the world’s largest exporter of premix coffee, with an export value of USD 454.7 million and a 17.54 percent global market share in 2025. Instant coffee exports reached USD 225 million with a 5.88 percent market share, placing Indonesia among the world’s top five exporters.

Expansion opportunities also come from value‑added products such as roasted beans, specialty coffee, coffee capsules, drip coffee, ground coffee, organic coffee, and decaffeinated coffee.

The Ministry is also promoting standardization, food safety, traceability, international certification, sustainability, and branding to strengthen the position of Indonesian products.

The government and industry players are strengthening upstream‑downstream linkages to support the diversification of domestic raw materials, technology, and products, thereby generating greater added value. These measures are expected to expand market reach while enhancing the competitiveness of Indonesian coffee in the global market. ***