South Sumatra Coffee Exports Set to Make Waves in 2025
On January 19, 2025, the Bom Baru Port in Palembang witnessed a historic moment as South Sumatra, Indonesia’s largest coffee-producing region, embarked on its first major coffee export initiative. A total of 14 containers, each with a capacity of 19.8 tons, are slated for export throughout the year, marking a significant step in showcasing the region’s coffee on the global stage.
The first shipment included 3 containers—2 bound for Malaysia and 1 for Australia—carrying a combined 59.4 tons of coffee.”Sent to Malaysia 2 containers, namely 39.6 tons, and Australia 1 container, namely 19.8 tons, so the total is only 3 containers or 59.4 tons sent for this first export,” said Arifin Susanto, a key figure in the initiative.
The coffee destined for Malaysia includes two premium varieties: Robusta Grade 4 from Pagaralam and Arabica Grade 1 Specialty from Semendo, Muara Enim. Meanwhile, Australia will receive Robusta Grade 1 coffee, also sourced from Pagaralam. These exports highlight the diversity and quality of south Sumatra’s coffee,which has long been underappreciated despite the region’s annual production of 190,000 tons.
Challenges and Opportunities
Despite its status as Indonesia’s top coffee producer, South sumatra has struggled to establish its brand in the global market. “So far, exports have not been carried out in South Sumatra. It’s like South Sumatra has coffee, Lampung has a name,” Arifin explained. This lack of recognition has prompted the OJK (Financial Services Authority) and the South Sumatra Provincial Government to collaborate on creating a robust sales ecosystem.The goal is clear: to introduce South Sumatra coffee to the world and expand its reach to new markets.”we will work with original exporters from Palembang to explore exports to algeria,” Arifin added, signaling enterprising plans for the future.
Strengthening the Coffee Value Chain
Acting Governor of South Sumatra, Elen Setiadi, emphasized the need for improved post-harvest facilities to enhance the region’s coffee industry. “Farmers need to be facilitated as there is no downstream value. What has been produced so far is directly sold to offtakers and buyers. The added value is only in the coffee product, even tho we only need to process it one step further, the economic value might potentially be higher,” she said.
Investments in warehouses, dryers, and other infrastructure are critical to maintaining the quality of South Sumatra’s coffee and increasing its economic potential.
Key Data at a Glance
| Metric | Details |
|————————–|—————————————————————————–|
| Total Containers (2025) | 14 containers (19.8 tons each) |
| Destinations | Malaysia (10 containers), Australia (4 containers) |
| first Shipment | 3 containers (59.4 tons) to Malaysia and Australia |
| Coffee Varieties | Robusta Grade 4, Arabica Grade 1 Specialty (Malaysia); Robusta Grade 1 (Australia) |
| Total Value (2025) | Rp33.6 billion (277.2 tons) |
| Remaining Shipments | 11 containers (217.8 tons) worth Rp26.4 billion |
A Promising Future
This export initiative is more than just a milestone for South Sumatra—it’s a testament to the region’s untapped potential. With strategic partnerships and investments, South Sumatra’s coffee could soon rival the likes of Lampung, Indonesia’s more renowned coffee-producing region.
As the world’s coffee market continues to evolve, South Sumatra is poised to carve out its niche, offering unique flavors and high-quality beans to discerning consumers worldwide.
For more insights into Indonesia’s coffee industry, check out how Indonesian coffee Wins Award in China.
Stay updated with the latest news on South Sumatra’s coffee exports and other developments by following Tempo on Google news.
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This article is based exclusively on the provided details and incorporates hyperlinks to relevant sources for further reading.
South Sumatra Coffee Exports: A Conversation with Coffee Expert Dr. Rina wijaya
South Sumatra, Indonesia’s largest coffee-producing region, is making headlines with its first major coffee export initiative in 2025. With 14 containers of premium coffee varieties like Robusta Grade 4 and Arabica Grade 1 Specialty set to reach markets in Malaysia and Australia, the region is poised to carve out a niche in the global coffee industry. To delve deeper into this milestone, Senior Editor of world-today-news.com, Sarah Thompson, sat down with Dr.Rina Wijaya, a renowned coffee industry expert and researcher specializing in Indonesian coffee production.
The Significance of south Sumatra’s First Major Coffee Export
Sarah Thompson: Dr. Wijaya,thank you for joining us today. South Sumatra’s first major coffee export is a historic moment. What does this mean for the region and Indonesia’s coffee industry as a whole?
Dr. Rina Wijaya: Thank you, Sarah. This is indeed a significant milestone. South Sumatra has long been Indonesia’s top coffee producer, contributing around 190,000 tons annually. Though,despite its high production volume,the region has struggled to establish a strong brand identity globally. This export initiative is a crucial step toward changing that narrative. By showcasing its premium varieties like Robusta Grade 4 and Arabica Grade 1 specialty,South Sumatra is finally getting the recognition it deserves.
Sarah Thompson: The first shipment included 3 containers—2 to Malaysia and 1 to Australia. Why were these markets chosen?
Dr. Rina Wijaya: Malaysia and Australia are strategic markets for South Sumatra’s coffee. Malaysia has a growing demand for high-quality coffee, especially for specialty Arabica and premium Robusta. Australia, on the other hand, is known for its discerning coffee culture, making it an ideal market to introduce South Sumatra’s Robusta Grade 1.These exports not only highlight the diversity of South Sumatra’s coffee but also open doors to other potential markets.
Challenges in Establishing South Sumatra’s Coffee Brand
Sarah Thompson: Despite its high production, South Sumatra has faced challenges in establishing its brand globally. What are the key obstacles, and how can they be addressed?
Dr.Rina Wijaya: One of the main challenges is the lack of a cohesive branding strategy. While Lampung, another Indonesian coffee-producing region, has built a strong reputation, South Sumatra has remained in the shadows. This is partly due to the absence of a robust sales ecosystem and limited post-harvest infrastructure. Farmers often sell their produce directly to buyers without adding significant value.
To address this, collaborations like the one between the OJK (Financial Services Authority) and the South Sumatra Provincial Government are crucial. By creating a structured sales ecosystem and investing in post-harvest facilities, the region can enhance the quality and economic value of its coffee.
Sarah Thompson: You mentioned post-harvest infrastructure.How critical is this to the region’s coffee industry?
Dr. Rina Wijaya: Extremely critical. Post-harvest processing—such as drying, sorting, and storage—plays a vital role in maintaining coffee quality. Currently, many farmers lack access to proper facilities, which affects the consistency and marketability of their produce. Investments in warehouses, dryers, and other infrastructure can significantly improve the quality of South Sumatra’s coffee and increase its economic potential.
Strengthening the Coffee value Chain
Sarah Thompson: Acting Governor Elen Setiadi emphasized the need to strengthen the coffee value chain. What steps can be taken to achieve this?
Dr. Rina Wijaya: Strengthening the value chain requires a multi-faceted approach. First, farmers need better access to post-harvest facilities and training on quality control. Second, there should be more collaboration between farmers, exporters, and government agencies to ensure a seamless supply chain. adding value through processing—such as roasting and packaging—can significantly increase the economic returns for farmers.
Such as, instead of selling raw beans, farmers could explore producing ready-to-brew coffee products. This not only increases profitability but also positions South Sumatra as a producer of high-quality, value-added coffee.
The Future of South Sumatra’s Coffee Industry
Sarah Thompson: Looking ahead, what do you see as the future of South Sumatra’s coffee industry?
Dr. Rina Wijaya: The future is promising. With strategic partnerships and investments, South Sumatra has the potential to rival other renowned coffee-producing regions like Lampung. The export initiative is just the beginning. By focusing on quality, branding, and value addition, South Sumatra can carve out a niche in the global coffee market.
Moreover, initiatives like exploring exports to Algeria and other new markets signal a proactive approach to expanding the region’s reach. As the world’s coffee market continues to evolve, South Sumatra’s unique flavors and high-quality beans are well-positioned to attract discerning consumers worldwide.
Sarah Thompson: Dr. Wijaya, thank you for sharing your insights. It’s clear that South Sumatra’s coffee industry is on the cusp of a transformative journey.
Dr. Rina Wijaya: Thank you, Sarah.It’s an exciting time for South Sumatra, and I’m optimistic about the region’s potential to make a lasting impact on the global coffee stage.
For more insights into Indonesia’s coffee industry, check out how Indonesian Coffee Wins Award in China.
Stay updated with the latest news on South Sumatra’s coffee exports and other developments by following Tempo on google News.
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This interview is based exclusively on the provided details and incorporates hyperlinks to relevant sources for further reading.
