Indonesia

Indonesia's Coffee Industry

Indonesia is the world’s third-largest Robusta producer and a significant Arabica origin, with total coffee production forecast at 11.3 million 60-kg bags for the 2025/26 season. Robusta accounts for approximately 9.8 million bags and Arabica for 1.45 million bags. Coffee exports are expected to reach 6.5 million bags, contributing over $1.5 billion to the national economy. Sumatra dominates Robusta output, while Arabica is grown in high-altitude regions of Northern Sumatra, Java, Sulawesi, and Papua.

Climate change is a growing threat to Indonesia’s coffee sector. Prolonged droughts, erratic rainfall, and rising temperatures have disrupted flowering and harvest cycles, particularly in Arabica zones. The impacts of El Niño and La Niña have led to crop failures, soil degradation, and increased pest pressure. Up to 70% of coffee-growing areas require renovation due to aging trees and outdated varieties. Adaptation efforts include agroforestry, intercropping, and ecosystem-based approaches, though uptake remains uneven.

Political and structural challenges include fragmented supply chains, limited access to improved planting material, and weak extension services. Smallholders, who represent 98–99% of producers, often lack the resources to meet international sustainability and traceability standards. Government support has focused on boosting productivity and export competitiveness, but gaps remain in upstream coordination and farmer training.

Indonesia’s production model is dominated by smallholder farms averaging 1–2 hectares. Robusta is typically grown in lowland areas with mechanised or semi-mechanised systems, while Arabica is cultivated in high-altitude zones using traditional methods. Specialty coffee is gaining traction, with regions like Gayo, Toraja, and Mandheling producing micro-lots protected by geographical indications. A few large estates exist in Sulawesi and East Java, but they represent a small share of national output.

For UK and EU Buyers

Sea freight from ports such as Surabaya, Semarang, and Jakarta typically take 35 to 45 days.

Indonesia offers a diverse and resilient coffee origin for UK and EU buyers, with strong Robusta supply and growing specialty Arabica potential. Sourcing requires attention to climate adaptation, smallholder support, and evolving compliance frameworks.