The positive momentum for Indonesia's cocoa industry is further strengthened by the increase in chocolate prices on the world market.
Quoting Tradingeconomics, cocoa prices at the close of trading on Monday (21/7/2025) reached USD 7,909 per ton, in an upward trend of 8.84 percent compared to Thursday (17/7/2025) at USD 7,266 per ton.
"The world price of chocolate is very high and many expect chocolate from us and we also have to immediately start new nurseries, new rejuvenation," said President Prabowo Subianto in Solo, (20/7/2025).
According to him, the rise in global prices is due to an outbreak that damaged cacao trees in Latin America and Africa, creating a supply deficit.
In response to this, the President emphasized the importance for Indonesia to immediately conduct nurseries and rejuvenate cocoa trees. This effort aims to capitalize on the momentum of rising prices and increase national cocoa production. This strategic step is crucial to ensure that Indonesia can maximize its export potential amidst high global demand.
Export Potential Amid Challenges and Opportunities
Indonesia continues to strengthen its position as a key player in the export of cocoa and processed products. Data from January to May 2025 shows that the export value of cocoa and its products reached 338 million USD with a weight of 27,965,477.6 Kg. The diversity of export destination countries shows a wide range of markets, with several key partners dominating:
- United States: About 20.64%
- Malaysia: About 17.35%
- Netherlands: About 15.95%
- Germany: Around 11.87%
- Singapore: About 9.22%
- India: About 5.75%
- China: About 3.21%
- Japan: Around 2.88%
- Canada: About 1.72%
- Australia: About 1.59%
In addition to these key countries, Indonesia also exports cocoa to various other countries, showing strong market diversification. Major ports such as Tanjung Priok, Tanjung Perak, and Belawan are the main gateways for the distribution of Indonesia's cocoa exports.
Indonesia's cocoa import data worth USD 220,333,959 also shows the need for domestic processed raw materials, which can be optimized by increasing local production. By focusing on rejuvenation and nurseries, Indonesia can not only meet domestic needs but also significantly increase its market share in the global cocoa export scene.
However, Executive Director of Center of Reform on Economics (CORE) Indonesia, Muhammad Faisal, highlighted that there is still a big homework for Indonesia to maximize this opportunity.
"Suplai kurang kurang untuk domestik, untuk global. Artinya mestinya kalau suplainya kurang, kita mestinya bisa mendorong produksinya, jadi bisa mendapatkan keuntungan dari situ karena permintaannya besar. Sementara suplainya terbatas di Indonesia dan juga di negara-negara penghasil kakao yang lain," katanya kepada Suar,(21/7/2025)
Faisal explained the two main obstacles in boosting Indonesia's cocoa production:
- Low Plantation Productivity: "The productivity level of our cocoa plantations is low and even tends to decline," he said. This is due to the government's lack of attention to improving the productivity of cocoa land, including the lack of a comprehensive replanting program, unlike other commodities such as palm oil.
- Quality Limitations of Export Standards: "To meet cocoa quality standards that are in accordance with the specs expected by, for example, the European Union. Meanwhile, to achieve these standards, we are still relatively limited in our capacity building capabilities in the country," he said. He cited the example of African countries such as Côte d'Ivoire and Ghana that have managed to fulfill supplies to Europe due to processing, including fermentation.
This supply shortage, according to him, also affects the downstream industry in the country. "Many chocolate factories are relatively able to grow, but it is difficult to grow in terms of quantity. Because of the shortage of cocoa raw materials, plus sugar," he said, adding that there are actually many downstream industries, but the problem is in the supply of raw materials.
Strategies for Overcoming Challenges and Seizing Opportunities
To overcome the quantity limitations and improve quality, Faisal suggested two main steps:
- Systematic and Comprehensive Cocoa Rejuvenation Program: "Rejuvenate cocoa plantations," he emphasized. A lot of cocoa land in Indonesia is unproductive. The government needs to conduct a rejuvenation program based on available data on unproductive land. This program should not only provide seedlings, but also assistance and incentives for farmers. "It's not just giving seedlings and letting them go, that's not possible. So there must be assistance that this seedling in the first year should be how, the second year how, and so on until he produces," he added.
- Incentives and Assistance to Improve Cocoa Bean Quality: Encouragement is needed to improve the quality of export-ready cocoa beans, including through fermentation and drying processes that meet international standards. "Not only in terms of quantity which is encouraged by increasing rejuvenation in unproductive lands, but also the quality meets the standard needs for export," he concluded.
With a focus on replanting and quality improvement, Indonesia can not only meet domestic needs but also significantly increase its market share in the global cocoa export scene, taking advantage of rising prices and demand in the international market.
Coupled with the government's encouragement for replanting and new nurseries, Indonesia has a great opportunity to increase the volume and value of cocoa exports. Rising global chocolate prices are a strong incentive for Indonesian farmers and the cocoa industry to boost production and quality. Increased production supported by rejuvenation initiatives will enable Indonesia to fill supply gaps in the global market, strengthen its bargaining position, and increase state revenues from the non-oil and gas sector.
Deputy Chairman of Commission IV of the House of Representatives, Ahmad Yohan, expressed his appreciation for the rise of the chocolate agricultural sector as a superior commodity.
According to him, the awareness to develop agriculture, especially chocolate commodities, emerged during the COVID-19 pandemic. At that time, he continued, residents who usually depended on the tourism sector switched to agriculture, especially chocolate.
"Our problem is not only quantity but also capacity and quality. We want to invite all stakeholders to encourage farmers to manage chocolate properly so that the selling price is high and provides more profit than other commodities," said Yohan.
Indonesia is the fifth largest producer of chocolate in the world. According to data from the Ministry of Agriculture, national chocolate production reaches around 720 thousand tons per year, with most of it coming from the islands of Sulawesi, Sumatra and Bali. Indonesia is the fifth largest chocolate producer in the world, after Ivory Coast, Ghana, Nigeria and Cameroon.
However, Indonesia still faces challenges in terms of downstreaming and processing chocolate, so the added value of national chocolate products is not maximized. Many cacao beans are exported raw to foreign countries, while value-added processed products are still limited.
Ahmad Yohan emphasized the importance of encouraging the downstreaming of chocolate products in the country, so that the production can be enjoyed directly by the community and tourists without having to be processed abroad.
"We don't want our chocolate to be taken to Switzerland, then only a few people enjoy the results. We want tourists who come to Bali to enjoy quality local chocolate without the need to go to other countries," said the PAN faction politician.
He also underlined the need for education and capacity building for farmers so that chocolate processing and production is carried out with good standards so that the quality and selling price can increase.
