Smallholder farmers are the backbone of Indonesia’s coffee production, contributing the majority of the country’s production. With coffee being grown across Sumatra, Java, Sulawesi, and Bali, these farmers play a crucial role in sustaining the industry’s output and quality.
The Impact of Climate Change on Indonesia’s Coffee Production
However, despite being one of the world’s top coffee producers, Indonesia may have to increase coffee imports in 2024 to meet growing domestic demand. This is largely due to declining production caused by extreme weather conditions and reduced carry-over stock from the previous year.
Indonesia’s coffee culture has been growing rapidly, with an increasing number of consumers favoring high-quality coffee. In recent years, productivity has improved due to better access to fertilizers, pesticides, and training programs. Government and private sector initiatives have helped smallholder farmers enhance yield quality while adopting more sustainable farming practices.
However, Indonesia’s Coffee Production in 2023 dropped to 756,100 tons due to El Niño’s impact, and further declines are expected in 2024. Many smallholder farmers lack irrigation infrastructure, making them highly vulnerable to drought conditions. With less coffee available domestically, imports could rise to bridge the gap.
To ensure the long-term stability of Indonesia’s coffee production, more investment is needed in farmer education, sustainable practices, and financial support. Empowering smallholder farmers through training and better resources will not only improve yields but also help maintain Indonesia’s global reputation as a top coffee producer.
Ayasha is a Business Analyst at Central Insight. Before her role at Central Insight, she was a Business Analyst Intern at a leading marketing consultancy in Indonesia, where she played an active role in various end-to-end research projects within the Government and Public Services sector, utilizing both qualitative and quantitative methodologies. In her current position, she is responsible for gathering relevant data, conducting in-depth analyses, and delivering insightful reports. Ayasha holds a Bachelor of Business Management in International Business from the University of Queensland, where she received recognition for her outstanding academic achievements.
Ayasha is a Business Analyst at Central Insight. Before her role at Central Insight, she was a Business Analyst Intern at a leading marketing consultancy in Indonesia, where she played an active role in various end-to-end research projects within the Government and Public Services sector, utilizing both qualitative and quantitative methodologies. In her current position, she is responsible for gathering relevant data, conducting in-depth analyses, and delivering insightful reports. Ayasha holds a Bachelor of Business Management in International Business from the University of Queensland, where she received recognition for her outstanding academic achievements.
