Cocoa became one of the most sought commodity in the world. World cocoa demand continues to increase. However, numbers of world cocoa producers are comparatively little. There are only five countries are able to produce large amounts of cocoa. Indonesia is the third largest country. Therefore, the amount of the increase in demand for cocoa is difficult to match the number of cocoa production, including by Indonesia.
In 2014, world demand for chocolate industry is expected to reach 4.178 million tons, this value includes the needs of Indonesian cocoa that reach up to 500,000 tons. In fact, Indonesia's cocoa production is estimated only able to reach 450,000 tons. That is, the position of Indonesia as the country has shifted from a cocoa exporter country into importer of cocoa. Moreover, next year domestic cocoa processing industry is estimated will absorb up to 600,000 tons.
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| image source: chocolatemonggo.com |
Indonesia is currently seeking an increase in the cocoa processing industry in order to not only exported cocoa products as bean. Therefore, the government continues to encourage the growth of the cocoa processing industry capacity continues to increase. But in fact, the production of cocoa bean from farmers themselves are not able to meet the needs of only industry inside country. Increased production capacity of cocoa processing industry in the country is not matched with the production capacity of cocoa beans from farmers. Therefore, more efforts are needed to encourage increased weight of cocoa productivity significantly.
Government policies that want restrictions on exports of cocoa beans and s choose to process it in the country is basically good. Indonesia wants to provide higher added value in the production of cocoa. So that Indonesia not only export products in the form of cocoa beans but also in the form of processed products. Therefore, Indonesia encourage greater investment in cocoa processing industry and increase the cocoa bean export tax to 10%.
But unfortunately, this policy does not proper as well. Industrial growth is not matched by productivity growth. This condition threats to low the cocoa competitiveness of Indonesian cocoa products. Cocoa beans produced by Indonesia itself are not categorized as the best quality. Therefore many industries have to import cocoa beans in order to produce higher quality cocoa products. In fact, imports of cocoa beans in Indonesia subject to import duties of up to 5%. Import duty will certainly make the cost of production is increasing. Moreover, if the production of cocoa in the country increasingly minimal and must import most of the raw material of cocoa beans.
Increasing production costs will reduce the competitiveness of processed cocoa products from Indonesia. Even the competitiveness of Indonesian cocoa products can also be difficult to compete with imports of processed cocoa products in the domestic market. This is because the import duties for processed cocoa products has just reached 0%. Sure, it will make the difference in prices that threaten to the cocoa industry in the country.
It is necessary at this time is to increase the productivity of domestic cocoa and also quality improvement. Indonesian cocoa is mostly generated by the farmers up to 90%. Therefore, the main thing to do is to bring awareness to the farmers of the importance of improving the quality and productivity of their harvest.
These efforts by the Indonesian government through the sustainable cocoa certification program for cocoa farmers. It is expected to take to improve the welfare of farmers. Comprehensive policy and the success of the effort can bring Indonesia as an important player in the global cocoa industry and products with high quality premium cocoa product.
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