Jakarta, May 16 (Antara) -- Indonesia, the world's third-largest cocoa
producer, is intensifying its promotional activities to expand its cocoa
exports to global markets, particularly in Europe.
As part of efforts to expand its cocoa global market, Indonesia is
participating in a conference organized by the Federation of Cocoa
Commerce (FCC) in London. It began on May 12 and will be held till May
17.
Vice President Jusuf Kalla is leading the Indonesian delegation, which
includes the heads of coco-producing regions in Indonesia.
Among the heads of the Indonesian coco-producing provinces are Governor
of South Sulawesi Syahrul Yasin Limpo, Governor of Southeast Sulawesi
Nur Alam bin Isrudin, Governor of West Sulawesi Anwar Adnan Saleh, and
Deputy Governor of West Sumatra Muslim Kasim.
The vice president said his mission at the conference was to increase
the cocoa business in Indonesia so the commodity can expand its base in
European markets.
"Cocoa is our third-largest export commodity after palm oil and rubber.
The price of nearly all commodities dropped recently except that of
cacao. This indicates that the global demand for cocoa is increasing,"
he affirmed.
He stated that Indonesia has huge potential in cacao production as not
many countries in the world have cacao plantations.
"Not many countries can produce cacao as only those with a tropical
climate can produce it. As a result, we have a significant advantage,"
he added.
In his tour of London to attend the conference, Kalla is accompanied by
governors, whose provinces are among the cocoa-producing regions in
Indonesia, including South Sulawesi.
The provinces of South Sulawesi, West Sulawesi, Southeast Sulawesi and
Central Sulawesi contribute about 70 percent of the national cocoa
production, which amounts to some 800 thousand tons a year.
According to Governor of South Sulawesi Syahrul Yasin Limpo, the cacao
plantation in his province makes up about 75 percent of the nation's
cacao plantations. Indonesia has some 1.5 million hectares of cacao
plantations, of which about 93 percent are owned by farmers.
"As Indonesia is a strategic region for the development of cacao
plantations, we have potential to develop businesses in the field. In
South Sulawesi alone, cacao plantations reach 75 percent, which is the
highest in the country," Governor Syahrul Yasin Limpo noted in London on
Wednesday.
Furthermore, with the large number of chocolate consumers in Europe,
Indonesia has a good market for the development of the cocoa industry.
"Through a national campaign, we have been able to produce some 800
thousand tons of the commodity a year," he affirmed.
Moreover, West Sulawesi is also developing a cacao clone scheme. The
cacao clone from West Sulawesi has attracted a Swiss investor into
planning to process cacao beans from the province.
"The cacao clone from West Sulawesi is the best in quality in
Indonesia," Governor of West Sulawesi Anwar Adnan Saleh said last month,
on April 25.
The Swiss investor is seeking a local partner, the governor said. He
did not mention a name, but stated that the investor has the largest
cocoa processing factory in Switzerland.
According to the governor, the Swiss investor chose to invest in West
Sulawesi also because the province is the largest producer of cacao
beans in the country. West Sulawesi contributes more than 50 percent to
Sulawesi's total production of cacao beans, and Sulawesi accounts for
around 72 percent of the country's total production of the food
commodity.
In addition, cocoa produced in West Sulawesi province has been
penetrating the Japanese market this year, according to the head of
administration of Polewali Mandar district in West Sulawesi, Andi
Ibrahim Masdar.
"We met with the government and some Japanese businesspersons recently.
They asked us to export cocoa to their country," Masdar added.
He further noted that the cocoa exported to Japan will be processed
further into chocolate powder and products such as chocolate
bars. However, cocoa farmers have yet to be able to export the
requested amount of the commodity due to the high standards set by
Japanese markets.
"The amount of cocoa exported to Japan is still limited because they
set very high quality standards. Currently, we cannot meet their
demand," Masdar noted.
This week, Indonesia is targeting the European market, for which it is
taking part in the FCC conference in London to promote the cocoa
business in Indonesia.
As the world's third-largest cacao producer, Indonesia has the
potential to increase exports of the commodity to European markets.
However, Vice President Jusuf Kalla said in London on Thursday that
Indonesia has faced difficulties in exporting the commodity to the
region due to the imposition of a high import tax.
"The price of nearly all commodities declined recently except that of
cacao. This indicates that there is potential for an increase in the
demand for cacao and its processed products. We view this as a potential
area as Indonesia is the world's third-largest cacao producer," he
emphasized.
Therefore, Indonesia has urged the FCC to reduce tax on cacao imports from Indonesia to Europe.
"We are demanding equal treatment. There should be no discrimination
against processed cacao products from Indonesia. Tax of about 5 to 6
percent is imposed on our cacao, but no tax is levied on cacao imported
from Africa," Kalla pointed out.
He
added that Indonesia is the world's third-largest producer of cacao
beans after Ghana and Ivory Coast. The production gap between Indonesia
and Ghana is only some 50 thousand tons a year.
"Our
cacao bean production is recorded at 700 thousand tons a year, while
Ghana, the second-largest producer in the world, produces 750 thousand
tons. Our target is to increase the production by 50 percent (1,050
thousand tons) to meet the export demands in 2020," the vice president
explained.
He also expressed optimism that the welfare of cacao farmers in the country can be improved by increasing production.
"About
95 percent of the cacao production comes from farmers. This is a good
thing as the distribution is good and the income goes directly to the
farmers," he observed.
Kalla also invited foreign investors to carry out cocoa businesses in
Indonesia. "I am here to reinforce the commitment of the Indonesian
government to become one of the most competitive countries for
investors, particularly in the field of the cocoa industry," Kalla
remarked at a dinner with European entrepreneurs who are members of the
FCC.
He pointed out that some cocoa bean processing companies, such as
Nestle, Mars and Cargill, have developed their businesses in Indonesia.
The Indonesian vice president added that the presence of such large
companies indicates that foreign businesses are interested in investing
in the country, especially in the cocoa beans processing sector.
"With
an investment value of more than 600 million U. S. dollars in
plantations and crops, Indonesia continues to evolve into a choice for
foreign investors," Kalla affirmed.
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(T.A014/INE/S012)
EDITED BY INE
(T.A014/A/BESSR/Suharto) 16-05-2015 19:55:5 |
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