Prediction: Coffee Prices Rise 50 Percent Until August 2023

Coffee prices will rise by 50 percent. This prediction is based on coffee harvest time that will occur until August. Chairman of the East Java Indonesian Coffee Association (ASKI) Fery Frans Sinatra, said the price has started to increase while on plantations.

“The average coffee harvest in Indonesia is from June to August, including East Java. For Robusta coffee, there has been an increase of around 30 percent since cherry coffee or freshly picked coffee,” he told suryamalang.com (16/ 06/2023).

According to tribunnews.com, this increase occurred because coffee production during the harvest period has decreased due to the impact of climate change. This year, the rainy season cycle is longer and the summer season is hotter. One of the affected coffee production is Robusta coffee.

“Apart from that, there is also an increasing demand in the market. Currently, the demand for coffee for the local market has continued to increase since the end of 2022,” he added.

Previously, the price of coffee as cherry beans was still between IDR 7,000 and IDR 8,000 per kg. Now, the price has reached IDR 10,000 to IDR 13,000 per kg. Ferry said that price increases could occur while in process or at coffee shops for the lower middle class.

“Currently, people’s purchasing power has not recovered. There are traders who sell by agreement with the buyer. For example, one serving of coffee is usually 250 grams of ground coffee, now it is only 200 grams,” said Ferry.

To anticipate rising prices, the Ministry of SOEs is pushing for an increase in coffee production. One of them is by fostering the Makmur Kopi Program (PMO) which has been carried out by PMO Kopi Nusantara since early 2022. This program focuses on creating a globally competitive coffee industry ecosystem in Indonesia.

“According to the plan, this mentoring program will be expanded in Bondowoso and Jember. With a target of 2,300 hectares of smallholder land. We want to connect the ecosystem from upstream to downstream so that productivity and quality increase. If the quality goes up, the price will go up,” said PTPN Group Marketing Director Dwi (15/06/2023).