VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Production activities in the cocoa processing industry. (Photo: ANTARA/HO-Kemenperin)

VOINews, Jakarta: The Indonesian Cocoa Association (ASKINDO) and the Indonesian Chocolate Bean to Bar Association (ACBI) have expressed optimism regarding President Joko Widodo's recent establishment of institutional frameworks for the cocoa and coconut industries. This move is aimed at enhancing their global competitiveness.

"ASKINDO believes that this step is strategic to revive Indonesia's cocoa industry, which faces significant challenges in domestic cocoa bean availability and international trade competition," said ASKINDO Chairman Arief Susanto in Jakarta on Saturday.

Arief explained that the government's initiative to form two new deputy positions, namely the Cocoa Deputy and Coconut Deputy under the Indonesian Oil Palm Estate Fund (BPDPKS), could boost competitiveness by increasing product absorption in the domestic market, especially since 99% of Indonesia's cocoa is grown by smallholder farmers.

He emphasized that upcoming technical regulations aim to address the need for quality planting materials close to cocoa farming centers, ensure availability and access to subsidized fertilizers, and provide field extension agents for the sector.

Meanwhile, ACBI Chairperson Olivia Putri Prawiro stated that the government's policy was timely to counter Indonesia's declining cocoa production in recent years. According to Ministry of Industry data, cocoa production has decreased by 8.3% annually from 2015 to 2023, while imports have increased from 239,377 to 276,683 tons.

"With proper management, we hope these institutional frameworks will positively impact farmers and the industry, leading to increased productivity, cocoa quality, processed products, and assurance of harvest absorption for farmers," she added.

The Ministry of Industry initiated the establishment of these institutions to ensure raw material availability, enhance competitiveness, and increase economic value added (EVA) from these sectors.

Minister of Industry Agus Gumiwang Kartasasmita highlighted that President Joko Widodo had chaired a limited meeting on the Cocoa and Coconut Fund Management Agency, which decided to entrust the management of both sectors to BPDPKS by establishing the two new deputy positions./Antara/VOI