Indonesia is one of the world’s largest coffee producers, known for its diverse coffee-growing regions and rich flavors. The country’s coffee industry plays a significant role in its economy, attracting both local and international markets. From Sumatra to Sulawesi, Indonesian coffee is renowned for its unique characteristics, making it a staple in the global coffee trade.
Also read: Food and Beverage Industry in Indonesia: Outlook and Opportunities
Indonesia Coffee Industry Outlook
Indonesia is one of the world’s leading coffee producers, ranking among the top four globally alongside Brazil, Vietnam, and Colombia. With a total coffee plantation area of approximately 1.27 million hectares as of 2023, Indonesia’s coffee industry plays a crucial role in the country’s economy. Around 98% of coffee plantations are managed by smallholder farmers, producing both robusta and arabica beans.
Robusta coffee, which thrives at lower altitudes, dominates Indonesia’s coffee production, accounting for about 80–90% of total output. Meanwhile, highland regions like Aceh and North Sumatra are well known for their premium arabica beans. The country is also famous for its specialty coffees, such as kopi luwak, known as one of the world’s most expensive coffee varieties.
Indonesia exports around 60% of its coffee production, with major markets including the United States, India, Egypt, Germany, and Malaysia. The domestic coffee consumption trend is also on the rise, driven by the growing café culture and an expanding middle class embracing coffee as part of their lifestyle.
Also read: Major Industries in Indonesia (Based on Contribution to GDP)
Coffee Business Opportunities in Indonesia
Indonesia’s coffee industry presents numerous opportunities for entrepreneurs and investors. The rising demand for high-quality and specialty coffee has opened doors for:
- Coffee farming and plantations: Given the country’s fertile soil and favorable climate, investing in coffee farms can be lucrative. Government initiatives also support smallholder farmers in improving productivity.
- Coffee processing and export: With robust global demand for Indonesian coffee, opportunities exist in processing, packaging, and exporting coffee beans.
- Café and coffee shop chains: Indonesia’s café culture is booming, with local brands like Kopi Janji Jiwa surpassing international franchises in market presence.
- E-commerce coffee businesses: The digital era has made it easier for small coffee brands to sell directly to consumers online, tapping into the growing specialty coffee market.
According to Statista, revenue from Indonesia’s coffee market is projected to reach $9.97 billion in 2025, with coffee consumption continuing to grow, particularly in urban areas.
Indonesia Coffee Business Regulation
Starting a coffee business in Indonesia requires compliance with local regulations, including:
- Business Licensing: Entrepreneurs must obtain the necessary business permits, such as the Risk-Based Business Licensing through the Online Single Submission (OSS) system.
- Import and Export Regulations: Exporting coffee requires certification from the Indonesia Coffee Exporters Association and compliance with destination country regulations.
- Halal Certification: Given Indonesia’s predominantly Muslim population, obtaining halal certification for coffee products can enhance market appeal.
- Environmental and Sustainability Compliance: Sustainable coffee farming practices are encouraged, with incentives for businesses that adopt eco-friendly production methods.
Also read: Restaurant Tax in Indonesia: A Guide for F&B Businesses
Examples of Coffee Businesses in Indonesia
Several coffee businesses have found success in Indonesia’s dynamic market, including:
- Kopi Janji Jiwa: A local coffee chain with over 1,100 outlets nationwide, known for its affordability and locally inspired flavors.
- Tanamera Coffee: A premium coffee roaster specializing in high-quality Indonesian beans, catering to both local and international markets.
- Kapal Api Group: One of Indonesia’s largest coffee manufacturers, producing instant and ground coffee brands widely consumed across Southeast Asia.
- Anomali Coffee: A specialty coffee shop focusing on Indonesian single-origin beans, promoting local farmers and sustainable practices.
- Kopi Tuku: A popular Indonesian coffee chain known for its affordable yet high-quality coffee, including the signature “Es Kopi Susu Tetangga,” which helped popularize the milk coffee trend in Indonesia.
How to Start a Coffee Business in Indonesia
Starting a coffee business in Indonesia involves several key steps:
- Market Research: Analyze coffee consumption trends and potential demand in target areas.
- Business Registration: Register your business through the Indonesian Investment Coordinating Board (BKPM) and obtain necessary permits.
- Sourcing Quality Beans: Partner with smallholder farmers or established suppliers to ensure a steady supply of high-quality beans.
- Processing and Branding: Decide on roasting, packaging, and branding strategies to differentiate your product.
- Setting Up Distribution Channels: Choose between retail stores, online platforms, and wholesale distribution to reach consumers effectively.
- Marketing and Promotion: Utilize digital marketing, influencer partnerships, and café collaborations to boost brand awareness.
The Indonesian coffee industry presents vast opportunities for businesses and investors. With strong local and international demand, government support, and a thriving café culture, now is an excellent time to explore this sector. Whether through farming, processing, or opening a café, success in Indonesia’s coffee industry is within reach for those who understand the market and comply with local regulations.
If you are considering starting a coffee business in Indonesia, there are a number of resources and support services available to help you get started.
InvestinAsia is among the companies that specialize in aiding you with Indonesia company registration. We boast a team of seasoned experts who can guide you throughout the process of:
- Foreign company / PMA registration in Indonesia
- Indonesia representative office registration
- PT PMDN Set Up
- Virtual office setup in Indonesia
- Business registration number in Indonesia
- Indonesian Business Licenses
- Indonesia Trademark Registration
If you are interested in starting a business in Indonesia, you can start by contacting us for FREE consultation.
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