News

SASCI+ Kicks-Off Cooperation with Coffee Farmers in West Java

20 September 2023
Group photo of all participants during the kick-off meeting
Group photo of all participants during the kick-off meeting

Coffee is a major contributor to export earnings and a primary source of incomes for smallholder farmers, who were responsible for more than 99% of Indonesia’s coffee output in 2020. With the international and national demand for coffee witnessing substantial growth, Indonesia’s coffee production surged by 37% between 2000 and 2020. About 50% of the national production was destined for export in 2020.

Rising demand for sustainability in both the national and international markets presents a significant challenge for many smallholder farmers. These farmers often lack the necessary capital, capacity, and organizational structures to meet the requirements or to prove their compliance with them.

Group photo of participants when visiting one of the farmer cooperatives in West Java
Group photo of participants when visiting one of the farmer cooperatives in West Java

To support farmers in West Java with marketing and agricultural services, a farmer corporation with five farmer cooperatives as shareholders was established with support from the government. However, the cooperatives and the corporation have limited capacities to support farmers in sustainable production and accessing high value markets for sustainable, deforestation free coffee. Consequently, smallholder farmers are often price takers in a supply chain with limited value addition carried out on farm and cooperative level.

Additionally, many farmers in the region produce their coffee in agroforestry systems on state forest land, making them responsible for maintaining tree cover on the volcanic slopes in West Java. However, market requirements such as “deforestation-free”, as laid out in the EU’s Deforestation Regulation (EUDR), pose an additional obstacle to accessing international and high-value markets since farmers’ compliance has to be proven.

The Sustainability and Value Added in Agricultural Supply Chains in Indonesia (SASCI+) project is partnering with PT IndoCafco, the Indonesian subsidiary of international coffee trader ECOM, to work together with smallholder farmers to promote sustainable, legal and deforestation-free coffee production leading to increased incomes for farmers and sustainable management of forests.

SASCI+ is funded by the German Federal Ministry of Economic Cooperation and Development (BMZ) and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The project aims to increase the sustainability in agricultural supply chains of coffee, cocoa, natural rubber, and palm oil in Central Sulawesi, West Kalimantan, East Kalimantan, Lampung and West Java.

On Wednesday, 20 September 2023, SASCI+, along with PT IndoCafco, conducted a kick-off meeting to officially launch the project in West Java. Around 50 participants, including from the Ministry of Agriculture, local government, and farmer cooperatives, attended the event and were able to provide their input on future activities that would benefit the farmers.

The cooperation cis working towards four results: (1) supporting coffee farmers towards obtaining a living income, (2) strengthening coffee farmer organizations and promoting equal opportunities for both men and women, (3) ensuring deforestation-free and legal coffee production, and (4) creating and enabling environment for deforestation-free coffee landscape. Planned activities include developing a standard on good agricultural practices for coffee in West Java, increasing peer learning capacities, preparing farmer organizations for compliance with sustainability certification, farmer mapping and including farmers in a traceability system, and promoting West Java coffee brands.

Activities will be implanted between October 2023 and December 2025.

Contact Person
Jonas Dallinger

Key Buzzwords
Agriculture, coffee, farmers, sustainability, deforestation-free, supply chains