Issue link: https://read.dmtmag.com/i/491359
STiR tea & coffee industry international 53 Some regions, like Sumatra, have long, intense sunny periods; others, like Flores, typically do not." Drying can take 2-3 days in the former, 14 days in the latter," said Veronica Herlina, executive director, the Specialty Coffee Association of Indonesia (SCAI), Jakarta. Wet-hulled coffee is low in acid and characteristically sweet, with good body (some would say syrupy) and a fair amount of complexity. The body and complexity are special selling points for some buyers. It is thought to work well for making espresso drinks. For those who prefer the "sophisticated," clean, acidic finish of a fully- washed coffee, the complexity is a "turn-off." Moreover, due to improper handling in wet-hulling, the bean can pick up taints from mold and other contaminants. To address these issues SCAI engaged the Coffee Quality Institute. The CQI implemented the "Q-Grader" (arabica) and "R-Grader"(robusta) training programs in green and roasted coffee evaluation for Indonesian cof- fee professionals. Now, there is an infrastructure of experts in Indo- nesia who can communicate up and down the supply chain regarding the quality of green and roasted coffee. "We're very pleased to have assistance from CQI with their training in evaluative cupping. It's an opportunity for farmers to learn, for the first time, how to judge their own product relative to market expectations," said Herlina. SCAI holds auctions every two years that foster rela- tionships between local producers and buyers from around the world, said Herlina. "Everyone gets an education in the parameters of quality." Home game Currently, the Indonesian coffee industry is dependent on export markets. This means economic crises can play havoc with pricing, demand, input costs, inflation cur- rency devaluation, etc. Tremendous damage was done in 1997 (Asian Financial Crisis), 2008 (Global Reces- sion) and 2013-14 (reduction in Quantitative Easing). Indonesia's resilient economy dealt with 2008 fairly well due to reforms that were put in place in 1997, but it makes sense for the industry to diversify and further develop its domestic market. In bad times, the domestic market may remain strong as foreign demand softens; do- mestic prices may hold up while export prices tumble. Currently about 30% of the nation's total coffee production is consumed locally. Per capita consump- tion is only about 1 kilo of coffee per person per year, most of it soluble coffee. Consumption of specialty coffee is only one quarter of that amount. Indonesia's literate, highly-educated population stands at 247 million. More than half live on Java with 44% in cities. The population is expected to become the largest after China and India by 2043. Domestic con- sumption now accounts for two-thirds of the country's GDP. The World Bank predicts middle class consumers (those earning $3,000 a year) will increase from nearly 50 million in 2009 to 150 million in 2014. Production (1000s 60 kg bags) 2011/12 2012/13 2013/14 Arabica 1300 1700 1650 Robusta 7000 8800 7850 Total Production 8300 10500 9500 Imports Green Beans 930 300 200 Roast & Ground 135 150 175 Soluble 470 375 375 Subtotal Imports 1535 825 750 Total Domestic Use 2380 2415 2500 Exports (1000s 60 kg bags) 2011/12 2012/13 2013/14 Green Beans 4950 6900 6000 Roast & Ground 0 0 0 Soluble 2500 2000 1800 Total Exports 8450 8900 7800 Total Distribution 9918 11413 10,348 • Market year begins in April Indonesian Coffee Production