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What Are the Main Customs & Tariffs Applied in the Largest Markets for Indonesian Raw Coffee Bean?
HS code 0901
Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion.
090111
-- - Not decaffeinated :
09011120
- - - Arabica
09011130
- - -Robusta
Import Duty MFN (Most Favored Nation): 5.00 %
VAT : 11.00 %
Income Tax PPH: 2.50 % (With Import License, API) or 7.50 % (No Import License, NON-API)
Other Taxes: N/A
Regulation:
PMK 26/PMK.010/2022
PMK 41/PMK.010/2022
Tariff Preferences:
AIFTA (ASEAN India Free Trade Agreement)
2023: 0.00%
RCEP-Australia (Regional Comprehensive Economic Partnership Agreement - Australia)
2023: 3.5%
2024: 3%
RCEP-Korea (Regional Comprehensive Economic Partnership Agreement - Korea)
2023: 3.5%
2024: 3%
AJCEP (ASEAN-Japan Comprehensive Economic Partnership)
2023: 0.00%
2024: 0.00%
AKFTA (ASEAN Korea Free Trade Agreement)
2023: 0.00%
ATIGA (ASEAN Trade in Goods Agreement)
2023: 0.00%
IACEPA (Indonesia-Australia Comprehensive Economic Partnership Agreement)
2023: 0.00%
2024: 0.00%
ACFTA (ASEAN - China Free Trade Area)
2023: see the regulation
ICCEPA (Indonesia-Chile Comprehensive Economic Partnership Agreement)
2023: 0.00%
2024: 0.00%
RCEP-New Zealand (Regional Comprehensive Economic Partnership Agreement - New Zealand)
2023: 3.5%
2024: 3%
IJEPA (Indonesia - Japan Economic Partnership Agreement)
2023: 0.00%
IECEPA (Indonesia-European Free Trade Association Comprehensive Economic Parthership)
2023: 0.00%
2024: 0.00%
AHKFTA (ASEAN-Hong Kong Free Trade Agreement)
2023: 0.00%
2024: 0.00%
RCEP-Japan (Regional Comprehensive Economic Partnership Agreement - Japan)
2023: 3.5%
2024: 3%
IMPTA (Indonesia-Mozambique Preferential Tariff Agreement)
2022: 3%
RCEP-China (Regional Comprehensive Economic Partnership Agreement - China)
2023: 3.5%
2024: 3%
AANZFTA (ASEAN Australia New Zealand Free Trade Agreement)
2023: 0.00%
2024: 0.00%
RCEP-ASEAN (Regional Comprehensive Economic Partnership Agreement - ASEAN)
2023: 3.5%
2024: 3%
IKCEPA (Indonesia-Korea Comprehensive Partnership Agreement)
2023: 0.00%
2024: 0.00%
Does Coffee Production in Indonesia Come from Independent Farmers or Corporate Plantations?
Coffee plantations in Indonesia is a labor intensive industry. There are about 1.34 million independent coffee farmers in Indonesia that contribute to over 96% of the national production. State-owned farms only contribute 1.5% and the rest is private company corporate plantations.
There is a total 1.2M hectares of the farmer coffee plantations and only 14.5K hectares managed by the state own plantation and 9.71K hectares by private corporation.
The value chain of the Indonesian Coffee:
1. Farmer: producing the coffee cherry or green beans
2. Cooperation, Farmer Group, Collector, trader: buying & processing the cherry or buying the green beans from farmer
3. Local trader, producers: processing the green beans, grading & screening, and packing.
4. Exporter
5. Local Coffee industry
What Regions of Indonesia Produce Coffee?
Based on the 2023 Indonesian Statistics report from the Central Statistics Agency (BPS), Indonesia's coffee production reached 794.8 thousand Mt in 2022, an increase of around 1.1% compared to the previous year.
South Sumatera Province is the largest producers of the Robusta coffee, contributing 36% of the total national production. Followed by Lampung (21%), Bengkulu (11%). These 3 regions are contributing to 69% of the Indonesian Robusta coffee production. The other region is East Java province that contributed to 6%.
While the biggest producing region of the Arabica coffee are Aceh and North Sumatra provinces with shares of approximately 33% and 32% to the national production respectively. South Sulawesi and West Sumatra provinces, each share contribution is 12% and 6%.
For Arabica coffee, around 80% harvested from May to June, then followed by the Robusta coffee harvest period.
In a year, Robusta harvesting can be done twice in stages from February to March and the main harvest season is from April to September. The main harvest period usually lasts 4-5 months with a frequency of fruit picking every 10-14 days.
Who Are the Biggest Importers of Indonesian Coffee?
According to the 2023 Indonesian Statistics report from the Central Statistics Agency (BPS), In 2022 Indonesia exported 434.19 thousand tons, an increase of 12.92% from the previous year (year-on-year). The total export value reached USD 1.13 billion.
The United States (US) is the main destination for Indonesia coffee exports in 2022, with a volume reaching 55.75 thousand tons or 12.84% of total national exports with total value reached USD 268.04 million.
Egypt is the 2nd largest buyer with a volume of 37.61 thousand tons and a value of USD 82.17 million, followed by Germany ( USD 80.93 million), Malaysia (USD 53.25 million), Italy (USD 48.98 million), Russia (USD 44.16 million), Belgium (USD 65,04 million), UK (USD 48,25 million), Japan (USD 59,05 million), Canada (USD 15,6 million) and other countries (USD 370,78 million).
Does Indonesia Also Import Coffee?
Indonesia also imports coffee, mainly for industry & Horeca.
In 2022, total volume of import was 15 thousand mt with total value of USD 60 million.
The main exporters to Indonesia are Vietnam with total volume in 2022 was 6.1 thousand mt and Brazil (6.3 thousand mt)
What Are the Most Common Varieties of Exported Indonesian Coffee?
In 2022, according to ITC Trade Map data, Indonesia exported 377 thousand mt raw coffee beans of the Robusta type, 49 thousand mt of the Arabica type, and 8 thousand mt of other types. Thus, 98% of Indonesian exports correspond to Robusta and Arabica types.
Is Coffee Regulated by the Indonesian Government?
Based on Government Regulation No. 5/2021, concerning the Implementation of Risk-Based Business Licensing, business is required to have a Business Identification Number (NIB), or company registration number, to carry out business activities in Indonesia.
Related regulation for the export of the coffee commodity:
- Ministry Trade decree No. 19/2021
- Ministry Trade decree No. 2/ 2022
Required documents for export:
- Certificate of Origin (COO) or COO Form International Coffee Organization (ICO)
- Export documents, including: quarantine document, Certificate of Free Sale, Health Certificate & Export Notification for Food Packaging
- Documents are required by the country of destination
What Qualification Requirements Are There for Coffee Exporters in Indonesia?
To be able to export this commodity, an exporter must already have registered as an exporter of coffee from the Ministry of Trade. Exporters can use the license for shipment of export from any port in Indonesia. Qualification of the coffee exporter company in Indonesia:
What Is the Quality Check Process for Indonesian Coffee Beans?
Indonesian standard & certification body has released the national 6 standards for coffee commodity and coffee related product, as following:
• SNI 01-3542-2004 Coffee powder
• SNI 2907:2008 Coffee beans
• SNI 7708:2011 Sugar & creamer coffee ready to make
• SNI 2983:2014 Instant coffee
• SNI 4314:2018 Ready to drink coffee
• SNI 8773:2019 Premix coffee
Indonesia quality standard of the coffee beans is by the defect rate which refer to the National standard SNI Standard SNI 01-2907-2008
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