RI'S PROCESSED COCOA EXPORTS INCREASING

By Andi Abdussalam

Jakarta, May 31 (ANTARA) - Indonesia's overall cocoa exports are predicted to drop by about 12.5 percent this year, but its processed cocoa shipment to overseas markets has increased, which this year is expected to reach 40 percent of the total cocoa exports.          So far, most of Indonesia's cocoa products, or about 80 percent, are exported in the form of beans. However, the government has since April last year slapped a 15 percent tax on cocoa bean exports to encourage local factories to produce and increase exports of processed cocoa products.          Fermented cocoa beans producers said that Indonesia could increase the added value of its cocoa products by about Rp2000 (about US$0.23) per kg if exported in the form processed goods.          "It can be imagined if Indonesia's annual output reaches up to 500,000 tons. This means that there are about five hundred million kg of cocoa beans which lose Rp2000 per kg, or a total of about Rp1 trillion. This is farmers' money," Syamsuddin Said of the Indonesian Fermented Cocoa Beans Association, once said.          It is expected that this year cocoa exports from Indonesia, the world's third largest cocoa producer after the Ivory Coast and Ghana, will be between 280,000 ton and 300,000 tons, down from 320,000 tons in 2010, Zulhefi Sikumbang, chairman of an association known as Askindo, was quoted as saying recently by Reuters.          Askindo has predicted that the Indonesian production will be flat at about 600,000 tons this year, as increased output from new planting offsets the impact of heavy rains. Although its overall exports are declining over rise in domestic consumption, yet its processed ones on the rice.          This year, Indonesia's processed cocoa exports are expected to reach 40 percent of its overall types of cocoa exports. "Usually, Indonesia's processed cocoa exports only accounted for 20 percent of its overall cocoa exports. This year, its processed cocoa exports could reach 280,000 tons, or about 40 percent of its overall cocoa product exports," Piter Jasman, chairman of the Indonesian Cocoa Industry Association (AIKI) said  on Tuesday.           He said that processed cocoa exports had increased on the imposition of tax on cocoa bean exports so that raw material supply to local cocoa factories was ensured. "With guaranteed supply, we can produce more. After all, the government does withdraw any tax on processed cocoa exports," he said.          The values of Indonesia's cocoa exports in 2009 and 2010 were respectively recorded at US$1.41 billion and US$1.64 billion.          He said that with guaranteed cocoa beans supply at home cocoa factories were optimistic that they were able to increase production and raise processed cocoa contribution to the country's overall cocoa exports by 50 percent.          This is in line with the government's aim in imposing a 15 percent tax on cocoa bean exports, namely to bolster local processing industry and increase the added value of farmers cacao production.          About 93 percent of Indonesia's 1.5 million hectares of cocoa plantations are owned by smallholders.          "We are able to increase the contribution of processed cocoa products to the overall exports thanks to the export tax. This has guaranteed cocoa bean supply for local industries so they could increase their production. After all, processed cocoa exports are subjected to tax ," Piter Jasman said.          Data at the trade ministry showed an upward trend in the contribution of processed cocoa products to the overall national cocoa exports. Indonesia's cocoa paste and butter contribution to the overall cocoa exports increased from 17.71 percent in 2009 to 18.43 percent in 2010.          In this case, the values of Indonesia's overall cocoa exports in 2009 and 2010 were respectively recorded at US$1.41 billion and US$1.64 billion.          The contribution of cocoa paste and cocoa butter products to the overall cocoa exports in the January-February 2011 period reached 21.21 percent of the overall values of US$219.05 million.          In the same period in 2009, the contribution of cocoa paste and butter to the overall exports were only 15.56 percent of the overall export values of US$253.60 million.          The contribution of cocoa powder and cocoa bar exports also increased, which in 2009 was only recorded at 5.30 percent but in 2010 it rose to 9.08 percent.       In the January - February 2011 period the contribution of cocoa powder and cocoa bar exports to the overall cocoa exports was relatively high reaching 11.91 percent. In the same period in 2009, the exports of cocoa powder and cocoa bar products only accounted for 7.69 percent.          In the meantime, the contribution of Indonesia's cocoa beans and cocoa nut shell exports since 2010 has been showing a downward trend.          In 2010, the values of cocoa beans and cocoa nut shell exports were valued at US$1.19 billion, or 72.49 percent of the total export values which reached US$1.64 billion.          The contribution of cocoa beans and cocoa nut shell exports in that period was lower than their previous contribution which accounted for 76.98 percent of the total cocoa exports valued at US$1.41 billion in 2009.           The share of the cocoa beans and cocoa nut shell exports in the overall cocoa exports in the January - February 2011 period was recorded at 66.88 percent.          This figure was smaller if compared with the contribution of these two types of cocoa exports in the same period in 2009 which was 76.75 percent. ***5*** (T.A014/A/HAJM/20:55/a014) 31-05-2011 21:11:4