Coffee Beans from Indonesia are so popular, for instance. Benjamin Franklin once said,
Among the numerous luxuries of the table coffee may be consider as one of the most valuable. It excites cheerfulness without intoxication; and the pleasing flow of spirits which it occasions. is never follow by sadness, languor or debility.
Little did he know that years later, people continue to enjoy coffee beans from Indonesia.
The History
Since the 1960s, Indonesia has experienced a small but stable increase in domestic coffee production. However, according to data from Statistics Indonesia, the size of coffee plantations in Indonesia has been declining as farmers have shifted their focus to oil palm products (such as crude palm oil and palm kernel), rubber and cocoa, all of which yield higher returns on the international market.
Before World War II, Central Java in particular had a very strong rail transport system that brought coffee, sugar, pepper, tea and tobacco from the province to the port city of Semarang. East Indonesia , East Timor and Flores also produced coffee beans during this period. However, these islands were still under Portuguese rule. The Portuguese had also imported Arabica coffee beans plants, but they came from a different rootstock than what the Dutch had imported.
the war and the struggle for independence played a major role in the subsequent changes in the Indonesian coffee market today. The plantations were briefly take over by the Japanese occupiers. After that, plantations of coffee beans throughout Indonesia either came under the control of the new government or were abandon. Many colonial plantation owners fled the country to avoid arrest. Today, nearly 92% of coffee production is in the hands of small farmers or cooperatives.
Types of coffee beans
Indonesia produces various specialty coffees. The best are Luwak coffee (kopi luwak), Toraja coffee, Aceh coffee and Mandailing coffee. The first – luwak coffee – is possibly the most famous type of coffee, as it is knows as the most expensive coffee in the world.
It is brew from beans that have pass through the digestive system of the Asian palm civet (cat-like animal). Because of this special fermentation process inside the animal (and the fact that the civet is able to select the juiciest coffee cherries), this coffee is believe to have a richer flavor. Its labor-intensive production process and its rarity on the international market cause its expensive price.
Type of coffee available in Indonesia to be Imported
From Java there are:
Ciwidey fullwash
From Sumatra there are:
Gayo semiwash, fullwash, honey, natural, pea berry, long berry, wine strong, and gayo luwak liar.
From Sulawesi, there is:
Toraja fullwash
Special coffee beans
From Java, There are:
Weninggalih honey lactic
Sigarar utang honey sacharic
How to Export it
Coffee is now one of the five most traded commodities in the world. Due to its geographical location, the climate is very suitable for the cultivation and production of coffee. Currently, Indonesia is the third largest producer of coffee in the world. in other words, There are numerous coffee shops and cafes where you can enjoy coffees from different countries in a quiet and cosy atmosphere.
However, Indonesian consumers have embraced the global coffee craze with gusto and you can find Starbucks (USA), Coffee Bean (Singapore), Segafredo (Italy) and others in shopping malls in major cities. It is ironic that a huge amount of Indonesian coffee is send overseas, for instance. It’s there and get back to Indonesia to be sell under these famous international labels at global prices.
1.Import delivery terms with buyer
Firstly, always agree with your buyer on import terms (also called Incoterms: international trade terms) before entering into a sales contract. The delivery term chosen will usually depend on your buyer’s preference. The most common are Free On Board (FOB) or Cost, Insurance and Freight (CIF).
2. Terms of payment with buyer
Secondly, It is important to have agreements on payment terms before signing contracts. These documents are delivered to the customer against payment of a bill of exchange, which may be guaranteed by a bank.
3. Trade financing options & Phytosanitary Certificate
Thirdly, Buyers of specialty coffee may be willing to pre-finance your production so that you are able to cover the costs associated with production and export. in other words, if anyone want to pre-finance you, the amount can range from 20% to 100% of the cost. The remaining portion will be paid upon arrival if the coffee is in good condition. in addition, you can make will all depend on the nature of your relationship with the buyer, including mutual trust and commitment.
In addition, ask your supplier about the Phytosanitary Certification. It is used to attest that consignments meet import requirements and is undertaken by an NPPO.
4. Drafting the contracts
Strict contract fulfilment regarding contingencies during export procedures and transport is crucial. Hence, it is very important to be familiar with both the legal and practical aspects prevent disputes. In case, Certified IoR such as Kickrate could provide arbitration services.
5. Investing in quality packaging
The condition in which your shipment arrives at your buyers’ warehouses will determine your reputation. Therefore, you should invest in high quality packaging to protect your coffee beans during storage and transportation. Poor quality packaging will have a negative impact on the quality of your coffee and therefore damage the trust your buyer has in your business.
The type of packaging and how much it will cost should be agreed in the contract. In any case, coffee beans should be stored and transported in a cool and dry place, with good ventilation. It is not unusual to send potential buyers samples of your packaging size, material and design before making a large delivery.
