Market Expansion for Coffee from Forest Area of Perum Perhutani

Chairman of NFCF, National Forestry Cooperative Federation – Korea – Mr. LEE SEOK-HYUNG and President Director of Perum Perhutani signed an MOU on Development of Coffee Trading, on Friday. 1st April 2016 at Perum Perhutani Head Quarter – Jakarta.

Collaboration between NFCF and Perum Perhutani has been quite a long time. since 2009, in the field of timber plantation.   In 2015, the plantation has already reach 7,424 Ha out of 10,000 Ha targeted.  The first harvesting of the plantation has also been carried out in 2015 at Parung Panjang – Bogor.  Furthermore, NFCF is now considering to develop collaboration on wood processing to increase value-added of the timber.

To diversify business commodities, NFCF and Perum Perhutani agreed to expand the collaboration to promote non timber forest product, which is coffee. Perhutani has 46,000 ha area in Java that could be used for coffee plantation. 

So far Perum Perhutani has a joint partnership with the local community around the forest, with a program called the Community Collaborative Forest Management/PHBM.  One of the commodity that has been planted by the community is coffee, especially those who live in West Java.   

Indonesia coffee is well known in international market, since Indonesia is the 3rd  biggest coffee producer countries in the world, after Brazil and Columbia, and mostly, about 75% is robusta coffee.  As mentioned in the Tree Crop Estate Statistic of Indonesia 2013-2015 published by the Directorate General of Estate Crops – Ministry of Agriculture 2014, the national coffee production of Indonesia in 2013-2015 are 773,177 ton, 784,673 ton and 841,451 ton respectively. In the same period, the coffee production from Java island is 97,296 ton, 99,584 ton and 102,446 ton respectively.  Most of the coffee production in Java island is from smallholder plantation, including the local people that have a joint partnership with Perum Perhutani.

Both Chairman of NFCF and President Director of Perum Perhutani expected that this expanded collaboration could be beneficial for both parties.

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