WNAM REPORT: The Agriculture Ministry, in partnership with the Oil Palm Plantation Fund Management Agency (BPDP), launched a national program to rejuvenate smallholder cocoa plantations and accelerate downstream processing to address declining national production.
Indonesia’s standing as a global cocoa producer has dropped from third to seventh place, with current annual output reaching 200,000 tons.
The decline is driven by aging trees and low land productivity, which averages 700 to 800 kilograms per hectare—well below the international benchmark of 1.5 tons per hectare.
The ministry’s Director of Plantation Seeds Ebi Rulianti stated in a statement on Friday that the government has targeted 247,260 hectares of smallholder cocoa land for rejuvenation and expansion under a roadmap spanning from 2025 to 2027.
“There are two main programs: the rejuvenation of smallholder cocoa plantations and the expansion of cocoa cultivation areas,” Ebi said during a webinar commemorating National Cocoa Day.
Under the phased roadmap, the program will begin in 2025 with the rejuvenation of 4,066 hectares and an expansion of 200 hectares, before ramping up significantly in 2026 to cover 102,488 hectares of rejuvenation and 71,722 hectares of expansion.
The initiative will conclude in 2027 by targeting a further 40,274 hectares for rejuvenation and 19,700 hectares for expansion.
To support the initiative, the government is providing 1,000 seedlings per hectare alongside labor wage subsidies.
The Agriculture Ministry is also revising Ministerial Decree No. 25/Kpts/Kb.020/5/2017 to streamline seed certification and distribution protocols.
BPDP Acting Head of Food Program and Downstreaming Fund Disbursement Arfie Thahar affirmed the agency’s commitment to funding infrastructure, human resource development, and research proposals aimed at strengthening downstream market access.
The policy push comes at a critical time for domestic processors.
Indonesian Cocoa Association (Askindo CSP) Chairman Jefrey Haribowo noted that while global cocoa demand grows 2 to 3 percent annually, local processing plants are feeling the pinch of shrinking domestic cropland.
Indonesia’s 11 commercial cocoa processing plants—which hold a combined capacity of 700,000 tons—are currently operating at just 51 percent capacity due to raw material shortages.
“Nearly 99 percent of cocoa plantations in Indonesia are owned by smallholder farmers,” Jefrey said, urging accelerated seed distribution, expanded agricultural extension services, and enhanced support to help farmers meet international sustainability standards.
Indonesian Cocoa Farmers Association (APKI) Chairman Arif Zamroni also urged the government to ensure robust policy advocacy and human resource development directly targeting smallholder welfare as the program rolls out.
