The History of Indonesian Coffee Development_Which Coffee Brands Are Worth Buying in Indonesia_Which Indonesian Coffee Is the Best

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Indonesia's Coffee Business History

Indonesia's coffee business originated in 1696 during the Dutch colonial period, transforming from a Batavia spice farm into a coffee production area, making "Java and Sumatra" today's renowned world's third-largest coffee export region.

From Traditional Coffee to Specialty Espresso

Coffee has been recognized as an economic crop in Indonesia for over 300 years, undergoing a long period alongside the habit of drinking coffee.

Indonesian coffee culture shows no difference from many countries in ASEAN, combining deeply rooted local coffee with espresso drinking styles from the United States. Indonesia's famous coffee business consulting company understands the reasons and trends of Indonesians drinking coffee, which can be divided into two periods:

① Black Coffee Period

It can be said that from the past to the present, Indonesians have maintained the habit of drinking black coffee for a long time. Black coffee was known to Indonesians earlier than espresso. The coffee people like includes bagged instant coffee and a black coffee called Kopi Tubruk, priced at about 3,000 rupiah (about 12 baht). Indonesian coffee drinking characteristics include enjoying fried bananas with Turkish-style hot coffee. If someone likes cold coffee, they pour the coffee along a plate before drinking to lower the temperature. Local coffee shops have gained favor among people of all ages, especially men who enjoy socializing and storytelling, where they smoke a cigarette while drinking coffee and passing the time.

② Espresso Era

Italian-style coffee emerged 20 years ago. Initially, because it was only sold in some hotels and the price was relatively high, it had not yet become popular until 2004, when coffee chain giant Starbucks realized the spread of espresso in Indonesia. Although Indonesian coffee consumption continues to increase, Indonesians persist in coffee consumption behavior, treating coffee as a social activity or entertainment demand, rather than like many other countries where coffee is an indispensable part of daily life, always buying a cup of coffee before work. Indonesians often drink coffee after work, and coffee shops have become one-third of the choices for people to chat or meet after work. Regardless, now more and more Indonesians are recognizing quality coffee and understanding where to choose to drink coffee, how to make coffee, and treating coffee as a lifestyle.

Indonesian Coffee Export Overview

The chairman of the Indonesian Specialty Coffee Association (SCAI), one of the institutions promoting knowledge of coffee cultivation and developing Indonesian quality coffee, briefly outlined the export coffee business situation. "From 2000-2009, Indonesia's total exports grew by an average of 50-20% annually until becoming the world's third-largest coffee manufacturer. Robusta coffee accounts for about 70% of total export volume because the earliest Dutch coffee growers who planted coffee did not have sufficient knowledge of Arabica coffee, resulting in low coffee yields and many failures. Farmers turned to planting Robusta coffee suitable for the climate and disease-resistant. Later, farmers learned relevant knowledge and established organizations to promote Arabica coffee cultivation, giving farmers confidence in planting quality coffee, which is also a market growth demand."

Challenges and Opportunities

In 2010, the main obstacle to coffee exports was that Indonesia faced longer-than-normal rainy seasons with heavier rainfall, leading to reduced production. But there was also coffee demand from around the world. This means Indonesian coffee is being demanded by more people and becoming increasingly high-quality and international.

Coffee Shops and Popular Italian Coffee

It can be said that Indonesia's coffee market is like many ASEAN countries, where the domestic market and independent coffee shops will begin to develop with the entry of American giants into the market. This important phenomenon has changed perceptions related to coffee and life and encouraged local businesses to open their own coffee shops. Coffee shop owners expressed views on the popularity of Italian coffee: "Currently, Indonesian coffee, especially in big cities, is in development, the market is growing, and consumers are beginning to learn more about coffee."

Independent shops and coffee chains have been established and have been growing continuously over the past 4-5 years. I believe that in the next 5 years, the coffee business will continue to grow. These shops have improved coffee production and consumption in Indonesia and led to the creation of more local coffee shops." Another important feature of Indonesian local coffee shops that cannot be ignored is the coffee shop owners' proud recommendations of local coffee. Even big brands like Starbucks Indonesia still provide quality coffee from Sumatra locally to meet customers' demand for enjoyment.

This is another factor for Indonesians to consider local quality coffee. Coffee shop owners expressed their views on this issue: "When the new store opened in 2000, Indonesians did not know espresso. Since they tasted Italian espresso from chain stores, when independent coffee shops or local chains continue to open, people see that it's not only Italian coffee that has good taste. Coffee shops' dedicated recommendations of local coffee make coffee consumers understand that local coffee also has quality taste like Italian coffee."

Growth of Specialty Coffee

Finally, when Indonesian consumers have more knowledge of quality coffee, what follows is an increase in the number of specialty coffee shops. According to coffee shop owners: "In big cities like Jakarta, Surabaya, Bandung, and Bali, specialty coffee shops are growing rapidly. This also shows that consumers have more knowledge about coffee, and coffee shop owners must choose quality coffee materials. The best marketing plan is to capture customers' hearts with quality products."

Leap of Local Chain Coffee Shops

In addition to the increasing establishment of independent coffee shops, Italian coffee is becoming more and more popular, even becoming a competitor to American brands Starbucks and Coffee Bean (currently with 31 branches), which has also led to the continuous emergence of more local brand coffees in recent years.

● Indonesian Coffee Bean Brand Recommendations

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