Medan, N Sumatra, April 9 (Antara) - The demand for Indonesian coffee from the United States and Japan is increasing, making the price of the commodity to remain at a relatively high level at about US$3.9 per kg, exporters said.
"The increasing trend in the price of the commodity in the world market encourages traders as the local price is declining in the face of harvest time. Local price now is about Rp32,000 - Rp33,000 per kg (about Rp9,800/US$1)," Andryanus Simarmata, the chairman of the Indonesian Coffee Exporters (AEKI) for North Sumatra, said here on Monday.
Earlier, exporters faced difficulties to export the commodity because the price in the local market was almost the same as the price overseas.
The local price happened to reach Rp40,000 - Rp41,000 per kg, or almost the same as the export price.
"Exporters begin to be encouraged by the strong demand with a relatively high price. Now, they have the courage to have transactions after previously they only waited and see," he said.
He said that most demand for coffee came from the United States and Japan.
Farmers here claimed that coffee prices at the farmers' level dropped by about Rp1,000 to Rp14,000 per kg for robusta coffee and Rp13,000 per kg for arabica coffee.
Robusta coffee is more expensive because demand for this type is higher amid scarce production.
Head of the North Sumatra Central Bureau of Statistics (BPS) Suharno said that coffee exports at the beginning of this year was still 19.45 percent lower than that in the same period in 2012.
Last year, the value of coffee exports in the same period had reached 68.208 million dollars but this year the value only reached 54.943 million dollars.
In the meantime, Trade Minister Gita Wirjawan said recently that Indonesia could become the biggest coffee producer in Southeast Asia because it had spacious land for coffee plantations.
"The government will continue to increase coffee production in the country so that Indonesia will become the biggest coffee producer in Southeast Asia," the trade minister said.
He said that Indonesia's coffee production now stood at 600 thousand tons per annum. It should continue to be increased so that Indonesia would become number one coffee producing country in Southeast Asia.
"To become number one producer, production from the upstream and downstream must be increased. The farmers should also continue to be inspired to increase their spirit and production," the minister said.
He said that one of the several factors that could be taken to increase production was utilizing available land in Indonesia.
"Apart from utilizing land, Indonesia should also prepare appropriate technology," the minister added.
However, the minister said, all of it should be accompanied with tight disciplines from stakeholders. With high disciplines the objectives could be achieved.***3***
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(T.SYS/A/A. Abdussalam/F. Assegaf)
