STiR coffee and tea magazine

Volume 3, Number 3

Issue link:

Contents of this Issue


Page 55 of 79

56 STiR tea & coffee industry international its 18,000 islands and its dependence on agricultural markets for export. Coffee is highly vulnerable to extreme weather, particularly changes in seasonal patterns drought and deluge. Drought during the flowering period, followed by excessive rainfall during fruiting, affected 85% of Indonesia coffee producing areas in 2012-13. Indonesia possesses a diverse coffee gene pool with stocks of at least 20 varieties, along six genetic lines. Genetic diversity means greater potential for adaptation within the coffee ecosystem. Scien- tists at World Coffee Research Center Texas A&M University, USA are working with heritage plants that have superior survival skills with an eye toward strengthening coffee varietals in cultivation. Domestic opportunity "Indonesian coffee consumption is growing rapidly due to positive factors in the demand and supply sides: increased demand because of economic growth in Indonesia, higher incomes, a young popu- lation, rapid urbanization, and a growing middle class," said Mira Yudhawati, sales and marketing manager Caswell's Fine Coffees and Teas, Jakarta. Factors on the supply side include the growing number of local and international franchises, innovative products, and more Indo- nesian entrepreneurs becoming active in coffee roasting and pro- cessing. they do direct training also to the farmers, she explained. "Baristas are becoming popular as we can see from the par- ticipants in the Indonesian Barista Championship which increases 50% every year. This year we had150 barista competing," she said. Thanks to excellent soils and microclimates, Indonesia's coffee farmers offer a diverse range of specialty and commodity coffees. Producers use traditional, dry and semi-wet processing, as well as modern fully washed methods. Government, NGO, civic and trade organizations, environ- mental groups and scientists are helping to upgrade the industry going forward, in spite of bureaucratic hurdles made worse by of- ficial corruption and decentralization. Though long isolated from markets, Indonesia's rural farmers are increasingly aware of evolv- ing quality standards in the specialty coffee market. There is a movement to strengthen the position of coffee farm- ers through local democratic organization-building, including pro- ducer co-ops, which provide training, processing, collection servic- es, marketing, low-cost credit and micro-loans. This puts farmers in a position to get just compensation for labor and material inputs. Formerly, they were forced to surrender the lion's share to interme- diaries as far up the value chain as the coffee roaster. The Indonesian economy is expanding impressively despite chaos caused by recent major financial crises. Industrialization and the growth of monoculture plantations has put pressure on land use and the environment, but the cof- fee industry remains productive. However it has not added acreage, improved facilities or renewed plant stock at the rate it might have. Indonesian coffee is not well-known, but steps are being taken to educate the consumer and the producer. There is an increased awareness on the part of coffee farmers of the advantages of value- adding, branding and certification. The cost may be beyond the resources of the small coffee farmer, but co-ops may help raise capital needed for the investment. Indonesia's domestic coffee market is growing by 20% a year, with an increasing number of consumers shopping and spending down-time at specialty cafés in cities. This is a place for future growth. Sources: Veronica Herlina Address: Plaza Aminta Bldg, Lt.3 R.302 Jl.TB. Simatupang Kav 10 Jakarta Selatan DKI Jakarta 12310 ID Phone: +62.7511941,, Some of Indonesia's Cafes Indonesia has seen growth in the retail coffee sector the past 15 years. Some international retailers, like Starbucks, purchase local beans, ship to US roasting plants and back to Indonesia as own brand. Locally-owned companies purchase and roast green coffee in Indonesian. • JJ Royal Coffee (local) A specialty coffee brand of PT JJ Multi Utama, an Indonesian company which opened a coffee café in the Jakarta airport in 2003. The company is now owned by the Sugar Group Com- panies, Padang, one of Indonesia's largest sugar producers. JJ Royal distributes arabica coffee from Toraja, Mandheling, Kayumas Java Estate, Aceh Gayo, Bali Kintamani, Mt. Bintang Papua and Flores, along with premium highland robustas. • Excelso (local) A growing Indonesian cafe franchise, subsidiary of Santos Jaya Abadi, the Kapal Api Group. The original company was founded in 1927 in Surabaya. It owns the well-known "Kapal Api" ("steamboat coffee") brand. It has 100 units in 28 cities. Excelso began offering café franchises in 1991. • Starbucks Coffee (international) Opened its first Indonesian café in 2002 and currently has 150 units in twelve cities (out of a total of 2,628 units in the Asia-Pacific) It hopes to have 247 units by 2016. The Starbucks franchise, as well as Burger King, in Indonesia is owned by Indonesian businessman, Syjamsul Nursalim. • Coffee Bean & Tea Leaf (international) Managed in Indonesia by PT TRANS coffee/TRANSCORP. Began business there in 2001 with 56 outlets. • Dunkin' Donuts (international) Owned by Allied Domecq, operators of Togo's and Baskin Robins. It entered the Indonesian market in 1985 with 200 units from Sumatra to Papua. • Segafredo Zanetti (international) Massimo Zanetti Beverage Group (Italy), operates 4 Segafredo cafes in Indonesia with four cafes. • J.CO Donuts & Coffee (local) Retailer specializing in donuts, coffee and frozen yogurt. The company is owned by Johnny Andrean Group with135 stores. • Liberica (local) A 5-unit chain of up-scale cafes founded in 2011 in Jakarta. Motto: "Kopi asli Indonesia," original Indonesian coffee. • Anomali (local) Five high-end cafes located in Java and Bali, owned by Irvan Helmi and Muhammad "Agam" Abgari. • 96 Degrees (local) Three simple, homey coffee cafes in Java. • Caswell's (local) Founded 2001, Caswell's Fine Coffee & Teas is a roaster, wholesaler and café operator with five units in Java, Sumatra and Bali, including two airport locations. • myKopi-O! (local) Founded in Surabaya in 1999 by young coffee entrepreneur, Darma Santoso. mKO! has 27 franchised, full menu coffee cafés throughout Indonesia.

Articles in this issue

Links on this page

Archives of this issue

view archives of STiR coffee and tea magazine - Volume 3, Number 3