SOE Minister Erick Thohir Officially Inaugurates Coffee Market Exhibition in Europe

Minister Erick Thohir said that the Coffee Market aims to improve Indonesia's position to become an important players in the supply chain of Indonesian coffee trade at the international arena. In the event, Erick said, Indonesia brought samples of more than half a ton with 97 types of coffee, ranging from green beans to derivative products. The coffees come from 11 regions, namely Ijen, Gayo, Mandailing, Karo, Lampung, Kerinci, Java Preanger (Garut and Bandung areas), Dieng, Bali Kintamani, Flores and Toraja.

"This agenda entitled Indonesian Coffee Market; Coffee Revolution is terrific because it brings visitors to know more the Indonesian coffee journey. While trying various original coffees from Indonesian, they will also can enjoy the exhibition on the history of Indonesian coffee production, as well as various types of coffee and its derivative products," said Erick when opening the Coffee Market in Posthoornkerk, Amsterdam, the Netherlands, Saturday (3/9/2022).

In addition to striving for better marketing of coffee with added value to increase export sales significantly, Erick said that the diversity and sustainability of Indonesian coffee, as well as its future business were also well narrated.

Erick said that SOEs fully support the revival of the national coffee industry. He demonstrated this in early 2022 by launching the Kopi Nusantara Project Management Office (PMO) initiative.

This step is taken to increase the productivity of domestic coffee through Makmur program scheme which has been implemented for other commodities, such as rice, sugarcane, and corn. The purpose of PMO Kopi Nusantara, said Erick, is to improve the coffee business ecosystem from upstream to downstream.

"This is why we must believe in building an Indonesian ecosystem because we have many advantages in various types of coffee," he said.

Erick said that PMO Kopi Nusantara is a part of the Makmur program for coffee commodities which provides access to finance, cultivation assistance, crop insurance, and markets.

"Why are state-owned enterprises obliged to act, because 96% of the coffee industry is in form of people's plantations. Our ultimate goal is the improvement of welfare of the farmers," Erick said.

In the agenda, Erick also witnessed the signing of a coffee purchase contract between stakeholders who are members of PMO Kopi Nusantara, including PTPN Group, and importers in the Netherlands and surrounding areas. Meanwhile, the initial transaction value is USD 5,6 million which consists of USD 2.5 Million purchasing contract and USD 3,1 Million MoU.

"From the very beginning, I asked SOEs to build an ecosystem where farmers must be the main priority," continued Erick.

Erick said that the European Union is recorded as the largest consumer of the world coffee, reaching 2.4 million tons per year, or 24% of the total world coffee consumption. That is also one of the reasons why the Coffee Market event was held in Amsterdam. Since the old time, he continued, the Netherlands is a potential market for Indonesian coffees.

"In addition, the average Dutch people drinks four cups of coffee a day. This shows the great market potential for Indonesian Coffee in the Netherlands which have historical-connection since the old times," said Erick.

Ministry of SOEs hopes that this Coffee Market moment in Amsterdam will become a milestone in the history of the increasing recognition of Indonesian coffee by global community, and Indonesia becomes the global market leader of the coffee industry in the world.

"I congratulate and have a great success for this Pasar Kopi: Indonesia Coffee Market event in Amsterdam," said Erick.

In this Indonesia Coffee Market which will take place from 1 – 11 September 2022, presentation of Amir Sidharta and Bonnie Triyana, as curators and designers of the world's first Indonesian coffee history exhibition will also be staged. In addition to talk shows with world-renowned coffee figures, coffee lovers can also enjoy coffee cupping and coffee pairing sessions, as well as tasting Indonesian specialty coffee in the unlimited brewing session area.

Dwi Sutoro, Marketing Director of PTPN III (Persero) Nusantara Plantation Holding, who is also the Chairman of PMO Kopi Nusantara, said this event is in line with the mission of PMO Kopi Nusantara which is to improve the supply chain ecosystem of the domestic coffee industry.

“We bring the best Indonesian coffees from our pilot projects, including Ijen Coffee from East Java which has historical value and a geographical indication that will attract the attention of global consumers," he said.

Among the various stories of coffee and its actors that will be staged at the Coffee Market in Amsterdam include coffee planting in villages on the forest boundary of Sulawesi, the utilization of abandoned land area in of Sumatran, reforestation of critical land in West Java, and gardens of the Indigenous people of Waerebo in Flores. Indonesia's coffee ecosystem includes, among others, highlands where arabica coffee are grown, lowland people-managed coffee plantations that produce robusta coffee, and peatlands where liberica-type coffee grows well.

In the last 10 years, Indonesian coffee industry has experienced a significant growth, reaching as high as 250%. Now Indonesia ranks as the fourth largest coffee producers. This superior commodity has become the third largest foreign exchange earner after palm oil and rubber.

The Indonesia Coffee Market in Amsterdam is expected to match local producers with foreign consumers, especially the European Union. In addition, the event is also expected to create a wider business expansion, so that Indonesia can become the main exporter of processed coffee products for the world market.