Coffee is a commodity with strength from upstream to downstream..Jakarta (ANTARA) - The Indonesian Ministry of Industry is seeking to leverage the national coffee industry's strong foundation to generate greater added value and boost its contribution to economic growth.
Industry Minister Agus Gumiwang Kartasasmita said in a statement confirmed on Wednesday that Indonesia has a solid foundation for developing its coffee industry, supported by abundant raw materials, a large domestic market, and significant export opportunities.
He noted that Indonesia ranks as the world's fourth-largest coffee bean producer, with production reaching around 834,000 tons in 2025.
On the downstream side, Indonesia's processed coffee products have reached more than 80 countries, underscoring the national coffee industry's strong competitiveness and vast potential for global expansion.
"Coffee is a commodity with strength from upstream to downstream. Our challenge moving forward is ensuring that this strength translates into greater added value," Kartasasmita said.
He added that this can be achieved by strengthening the processing industry, fostering product innovation, boosting productivity, and expanding market access.
"The government will continue to drive the national coffee industry to become more competitive and solidify its position in the global market," he affirmed.
The ministry's Director General of Agro-Industry, Putu Juli Ardika, said that Indonesia's coffee processing industry still has significant room for growth.
With an installed capacity of around 1.81 million tons, processed output in 2025 reached approximately 928,000 tons, representing a capacity utilization rate of about 51 percent.
The government aims to raise the coffee processing industry's utilization rate to 86.6 percent by 2029, making it a key policy focus to ensure that available industrial capacity is used optimally.
On the trade front, the performance of Indonesia's processed coffee industry showed a positive trend. In 2025, Indonesia was the world's largest exporter of premix coffee, with exports valued at US$454.7 million and a 17.54 percent share of the global market.
Meanwhile, Indonesia ranked among the world's top five exporters of instant coffee, recording US$225 million in exports and a 5.88 percent share of the global market.
The ministry's Director of Beverage, Tobacco Products, and Refreshments Industry, Merrijantij Punguan Pintaria, added that the growing strength of Indonesia's coffee processing industry in creating added value was evident during a recent visit to coffee processor PT Santos Jaya Abadi in Semarang, Central Java.
This was reflected in the use of domestic coffee raw materials, the adoption of technology and machinery in production processes, and product diversification to meet increasingly varied market demands.
To seize global market opportunities, the Ministry of Industry is also pushing for stronger standardization, food safety, traceability, international certification, sustainability, and branding of local coffee products.
Related news: Coffee industry expands business opportunities for MSMEs: Ministry
Translator: Ahmad Muzdaffar, Raka Adji
Editor: M Razi Rahman
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