CHALLENGES FOR

SUSTAINABLE COCOA
SUPPLY IN INDONESIA
Sikstus Gusli
Coordinator of Sustainable Cocoa Program of ASKINDO, and
Chairman of Technology Development and Transfer of Cocoa
Sustainability Partnership

Presentation outline
Characteristics of Indonesias cocoa

affecting supply sustainability

Current status

Future trend
Challenges for sustainable supply of

Indonesian cocoa
Conclusion

CHARACTERISTICS OF
INDONESIAS COCOA AFFECTING
SUPPLY SUSTAINABILITY

Key characteristics of Indonesian cocoa smallholders

Cocoa area by ownership

94 % cocoa farms are

smallholders
Cocoa production & management
= Smallholder lifes = Poverty
alleviation, especially in the
Eastern Indonesia
Average ownership (for Sulawesi)
= 1.3 ha/farmer
Cocoa farmers typically live from
multiple crops, but rely on cocoa
the most
Education attainment: + 40 % up
to primary school
Many cocoa farms are mono
cropped & un-shaded, but
transformation to shaded &
integrated farming is taking place

CURRENT STATUS OF INDONESIAN

COCOA

Cocoa producing countries in 2009/2010

Others
12%

PNG
1%

Ivory Coast
33%

Ecuador
4%
Brazil
4%
Cameroon
6%

Nigeria
7%
Indonesia
19%

Ghana
14%

Source: ICCO

Cocoa production of the main producing countries in the

last three years (ICCO, 2011)
1600

1382

1400

1223
1190

1200

1000

800

729
662

600
490
400

690
535
485

414
374357

200
52 59 47

150
113134

171157
155

Ecuador

Brazil

285
227
200

260
230250

Cameroon

Nigeria

0
Others

PNG

Ghana

Indonesia

Ivory Coast

(000 tonnes)

Tahun

Others

PNG

Ecuador

Brazil

Cameroon

Nigeria

Ghana

Indonesi
a

Ivory
Coast

2007 2008

374

52

113

171

285

230

729

485

1382

2008 2009

357

59

134

157

227

250

662

535

1223

2009 2010

414

47

150

155

200

260

490

690

1190

Distribution (%) of cocoa production by islands in

2009/2010
Maluku Papua
4%

Sumatera
17%

Jawa
1%
Nusa Tenggara
3%
Kalimantan
2%

Sulawesi
73%

Source: ICCO

Indonesias Cocoa Bean Export in the last 10 years

(Indonesias National Bureau of Statistics, 2011)

Data of Ditjenbun
Efforts to recover
Due to pests
& diseases

In the last 10 years production has increased by 43 %, while

the price has escalated by 337 %. Cocoa is very attractive

Pest & Disease Problems

Heavy VSD infestation:

Total lost

Phyotophtora & CPB:

Over 50 % lost

Vascular Streak Dieback and Fusarium Vascular Diseases

Oil palm nursery at heavily damaged cocoa farm in

West Sulawesi: Convertion from cocoa to oil palm

Oil Palm

Cocoa farm with damaged and aging trees is

converted to oil palm plantation

FUTURE TREND:
WILL INDONESIAS COCOA BEAN
SUPPLY BE SUSTAINABLE?

The dark vs the bright sides

Dark (challenges) side:
Pests & diseases continue to threaten supply sustainability:
Major pest: CPB & helopeltis
Major diseases: VSD, fusarium, phytophtora

Convertion to other attractive commodities, especially oil palm,

patchouli (Indonesian: nilam )(Pogostemon cablin Benth.) & cashed

crops, such as maize
Bright (promising) side:
Global price incentive
Relative competitiveness of cocoa
Extension & improvement in other parts of Eastern Indonesia &
Sumatera
Government programs, both national & provincial levels (West
Sulawesi, etc)
Supports from various institutions through Cocoa Sustainability
Partnership forum, notably from Mars Symbioscience, Hasanuddin
University, ASKINDO, AMARTA, ACIAR, etc for example sustainable
and high added value cocoa production
Strong commitment to be number 1 cocoa producer

So, which direction Indonesian cocoa is heading to?

To the bright side! Sustainable cocoa production
The justification are:
Farmers commitment (economic consideration & willingness to adopt
technology for a better change): Survey result
Government strong commitment (eg. Gernas Kakao, the National
Economic Corridor, Cocoa Initiative Program by the West Sulawesi
Province, etc.)
Sustainable cocoa programs by
Hasanuddin University,
Mars Symbioscience, ACIAR,
AMARTA, etc.
ASKINDOs support:
Past:

Cocoa Village Model & Demo Plots

To be established end 2011:
ASKINDOs Cocoa Teaching Station
(ACTS)

Program Gernas Kakao (Ditjenbun, 2008):

Governments Initiative
Program
Skill enhancement
(farmers & extension
personnels): 15,000 FG

2009

2010

4.000 Farmer 6.000 Farmer

Groups
Groups

2011
5.000
Farmer
Groups

Replanting: 70.000 ha

34.000 ha

36.000 ha

Rehabilitation: 235.000 ha

50.000 ha

90.000 ha

95.000 ha

Intensification (GAP):
145.000 ha

30.000 ha

60.000 ha

55.000 ha

Research Sub-station

4 units

Field laboratories

3 units

SNI dissemination

10 packets

20 packets

20 packets

Cocoa nursery developed from SE

technology (Gernas Kakao)

Cocoa produced from Somatic Embryogenesis technology

through Gernas Kakao starts to produce pods

PLANT REHABILITATION THROUGH SIDE GRAFTING

OF GERNAS KAKAO, STARTED TO YIELD

INTENSIFICATION PROGRAM THROUGH GERNAS KAKAO

CHALLENGES FOR SUSTAINABLE

SUPPLY OF INDONESIAN COCOA

Towards Sustainable Cocoa Production:

The Approach
Sustainability dimensions:
Profit:
Optimize income through high cocoa productivity, income from shade trees,

cocoa-animal integration, compost production, post-harvest handling, etc.

Price appreciation for better quality and sustainable production
Empower farmer group (and FG alliance)
Social (people) healthy and thriving communities:
Empower communities, especially farmers & their family
Improve childrens education

Environment safe and improve environmental quality:

Prevent forest destruction

Improve hydrologic condition and soil health

Minimize and rational uses of agrochemical
Implement integrated & zero waste cocoa production system
Improve biodiversity and environmental assets

\ Farmers/smallholders are the focus

More recent development towards sustainable cocoa

production: Technical support from Hasanuddin University
Integrated zero waste cocoa production system:
Cocoa is integrated with cows, multipurpose shade tree species,
cash crops, King grass, biogas and compost production
All are integrated in the same farm
Cocoa yield increases significantly under a sustainable system
Cow (meat) production: 9 cows (3 batches)/ha per year
Biogas production for family energy source & biogas byproducts
Bio-pesticides production
Cocoa trust fund for family income management & cocoa

business
Cocoa teaching for primary, junior and senior high schools

Cocoa nursery (for top grafted plants) managed

by smallhoder group: Farmers initiatives

Some results from side grafting with

superior clones done by smallholders

Other significant efforts made:

Establishment of Cocoa Sustainability Partnership (CSP) forum

since 2006.
CSPs vision:
Establishing a sustainable and more profitable & competitive
cocoa industry in Indonesia for the mutual benefit of all
stakeholders.
CSPs mission:
Coordinate development & transfer of cocoa farming
technology & business skill empowerment, supporting
sustainability & higher profitability for all segments of cocoa
industry.
Under CSP, all stakeholders are united and better coordinated,
have the same view towards key issues, messages delivered
to farmers, program design & its implementation, and ways of
working together for sustainable & better cocoa future.

CSP Program includes:

Development of technology relevant to the
identified issues & farmers needs

Effective & efficient technology transfer to farmers

Farmer empowerment through business skill

training, farmer group strengthening, information
dissemination and improved access to finance

CSP MEMBERSHIP
Who?

Potential members are:

Any cocoa industry

stakeholders or supporters,
willing to fund, provide
infrastructure or contribute
manpower to support cocoa
development activities

Farmer & producer

organizations
Worldwide chocolate/cocoa
industry & trade
Regional Government
Donors, development
agencies & other industry
supporters
Research institutions
Public sector organizations
Agricultural input suppliers

Integrated zero waste sustainable system:

We change the way we produce cocoa
Integrated zero waste system, 15 May 2011

Heavily
damaged cocoa,
1 July 2010

15/05/2011

15/05/2011

Outlook from 5 years ahead

With all the programs being implemented now, the outlook
from 5 years ahead is expected to be:
National production should reach over 1 million tons a
year to support both national processing industry and
bean export.
Integrated cocoa farming will play significant role in
Sulawesi sustainable cocoa production system.
(Note: Sulawesi contributes 72 % of the national
production).
Majority (>75 %) of Sulawesi beans will meet the SNI,
fermented, and certified for sustainable production.

CONCLUSION

In conclusion:
Significant challenges in Indonesias cocoa industry

associated with (for example) agronomic problems (e.g.

pests & diseases) and sustainable production matters.
However, being one of the most preferred cops by the
smallholders, especially in Sulawesi, and with the
substantial supports from government and members of
Cocoa Sustainability Partnerships, a better cocoa future
for sustainable bean supply and industry is expected in
the coming years. Significant improvement should be
achieved 5 years afterward.
Indonesia is moving towards certified sustainable cocoa
production system.