Coffee, husks, skins and substitutes market in Indonesia

Earlier Report Observations

From 2018 to 2020, the domestic coffee market volume in Indonesia declined from 555 thousand tonnes to 399 thousand tonnes. This drop was primarily driven by rising exports, which grew from 280 thousand tonnes to 379 thousand tonnes over the same period. The export increase was supported by international demand, especially after production shortfalls in Brazil, and the implementation of Peraturan Menteri Perdagangan Nomor 109 Tahun 2018, which regulated coffee exports. In 2020, the COVID-19 pandemic shifted consumer behavior, boosting demand for instant coffee, but this did not offset the outflow of production abroad.

In 2021, market volume edged up to 413 thousand tonnes despite further export growth. This was linked to increased production reaching 786 thousand tonnes, partly stimulated by high robusta prices that rose 61%. The new regulation Peraturan Menteri Perdagangan Nomor 19 Tahun 2021 simplified export procedures by removing the Eksportir Terdaftar Kopi requirement, easing entry for new exporters. However, in 2022 market volume fell again to 353 thousand tonnes as exports jumped to 438 thousand tonnes, aided by the continuation of liberal policy through Peraturan Menteri Perdagangan Nomor 2 Tahun 2022. Additionally, tighter EU standards on pesticide residues required producers to enhance quality, which may have temporarily affected export flows.

In 2023, market volume sharply rebounded to 520 thousand tonnes, with exports falling to 280 thousand tonnes and imports rising to 41 thousand tonnes. This shift suggests a rebalancing toward domestic consumption after years of high export orientation.

Production coffee, husks, skins and substitutes in Indonesia

In kind, 2018-2021, K t

Globally, Indonesia ranked as the 4th largest producer of coffee, husks, skins, and substitutes from 2018 to 2021.

Top producers of coffee, husks, skins and substitutes, 2018-2021

World map of production of coffee, husks, skins and substitutes, 2018-2021

Indonesia's production of coffee, husks, skins, and substitutes grew for the second year in a row. In 2021, the country produced 786.2 thousand tons, marking a 3.1% increase over 2020. Over the 2018-2021 period, production rose by 4%, averaging an annual growth rate of 1.3%. The lowest output was in 2019 at 752.5 thousand tons, with the largest decline that year at 0.5%.

Annual dynamics of production in Indonesia in kind, 2018-2021, K t

In value, 2018-2021, M $ US

Following two years of decline, Indonesia's production value for coffee, husks, skins, and substitutes rebounded. In 2021, output was valued at 1 743 million US dollars, showing a moderate 5.5% gain from the previous year. However, from 2018 to 2021, overall production value fell by 21.1%, with a compound annual growth rate of -7.6%. The lowest value was recorded in 2020 at 1 652 million US dollars, and the steepest drop occurred in 2019 at 16.2%.

Annual dynamics of production in Indonesia in value, 2018-2021, M $ US

Exports coffee, husks, skins and substitutes from Indonesia

Exports in kind, K t

Indonesia's export volumes of coffee, husks, skins, and substitutes increased for the third consecutive year. In 2021, exports reached 387.3 thousand tons, up 2.1% from 2020. Between 2018 and 2021, exports surged by 38.3%, translating to an annualized growth rate of 11.4%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, K t

From 2018 to 2021, Indonesia's export destinations in kind were highly diversified. The top three markets—the United States (15.9% of exports), Malaysia (10.3%), and Egypt (10.3%)—combined for only 36.5% of total flows. The remaining 63.5% was distributed among numerous smaller markets.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, M $ US

In 2021, Indonesia's exports of coffee, husks, skins, and substitutes were valued at 858.6 million US dollars, reflecting a moderate 4.5% increase from 2020. Over the 2018-2021 period, export value grew by 5%, with a compound annual growth rate of 1.6%. The peak was in 2019 at 883.1 million US dollars, with the largest decline in 2020 at 6.9% and the largest increase in 2019 at 8.0%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, M $ US

Data from 2018 to 2021 show that Indonesia's export value for coffee, husks, skins, and substitutes was not heavily concentrated. The United States (26.8% of exports), Japan (8.1%), and Egypt (7.7%) together accounted for just 42.6% of total flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports coffee, husks, skins and substitutes to Indonesia

Imports in kind, K t

Indonesia's import volumes of coffee, husks, skins, and substitutes fell for the third year in a row. In 2021, imports stood at approximately 13.6 thousand tons, a sharp 15.9% decrease from 2020. From 2018 to 2021, imports plummeted by 82.8%, with a compound annual growth rate of -44.4%.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, K t

Between 2018 and 2021, Vietnam dominated Indonesia's imports in kind, accounting for 72.5% of the total. The rest was spread across a variety of smaller suppliers.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, M $ US

Indonesia's import value for coffee, husks, skins, and substitutes declined for the third consecutive year. In 2021, imports totaled 34.8 million US dollars, a robust 14.6% drop from 2020. Over the 2018-2021 period, import value decreased by 79%, with a compound annual growth rate of -40.6%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, M $ US

From 2018 to 2021, Vietnam (61.3% of imports), Brazil (16.0%), and Malaysia (5.6%) were the main suppliers of coffee, husks, skins, and substitutes to Indonesia, together making up 83.0% of total import value.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021