Coffee Hailed As Saviour Of Bali Economy As Tourism Profits Slashed By Pandemic

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Leaders in Bali’s coffee export business are celebrating the success of the sector during the pandemic. At the ‘Acceleration of Increasing Coffee Exports’ conference held by the Denpasar Agriculture Centre at Kuta Central Park Hotel on Wednesday 29th June, industry leaders shared data that was gathered from 2020-2021. 

While many other sectors in Bali were decimated by the effects of lockdown, namely tourism, and hospitality, the coffee export business boomed and shows no sign of slowing down.

The Head of Denpasar Class I Agricultural Quarantine Center, Putu Terunanegara, spoke to coffee exporters, farmers, and other stakeholders at the one-day event and shared how the boom in coffee exports is ‘something extraordinary’. 

The data shows that Bali’s coffee exports have improved during the pandemic both in terms of value and volume. In 2020 Bali exported 87.7 tons of coffee beans, with a value of IDR 8.05 billion, an increase on 2019. In 2021 this increased again, with the island exporting 154.9 tons to international exporters, generating IDR 10.7 billion. 

In the first business quarter of 2022, Bali exported 16.09 tons with a value of IDR 3 billion and it is hoped that the exports will continue to climb with this year’s harvests. This data is only inclusive of international exports, Bali also exports coffee to the neighboring islands of Java and Sumatra.

This data was not included since intra-island transportation was limited by the pandemic which enabled Bali’s coffee industry to export even more beans to international markets. 

Terunanegara went on to explain how “Coffee is still a mainstay in the export market” and that the potential for Bali’s coffee industry remains largely untapped. He shared how he hoped that “There are new provisions from export destination countries that need to be socialized”.

He confirmed that in the coming years his department will help farmers with technical and operational support to capitalize on these new opportunities. He also explained that ‘we want to assist in encouraging the export performance of Bali’s coffee exports to increase’. 

The main buyers of Bali coffee are the USA, Japan, China, and South Korea. These nations are the top buyers of Bali coffee and are closely followed by Australia, New Zealand, and increasing markets like the Netherlands, the United Arab Emirates, Singapore, France, Switzerland, and Qatar.

European countries tend to buy more coffee from countries across Africa and South America since the East Asian and USA markets have such significant buy-in in Indonesia. 

Over 60% of Bali’s economy is dependent on tourism either directly or indirectly. He explained how the priority for Bali’s coffee industry now is to provide farmers and exports with technical guidance to make the industry flow with ease. Urip told the audience that he wants to see Bali-based coffee exporters compete with Vietnam, which previously modeled its industry on Indonesia. 

I Made Urip, a commissioner for the Indonesian parliament share his insights. He explained how Bali was taught a tough lesson by the pandemic, that it is not safe or sensible to rely on a single sector for the majority of an island’s revenue. Agricultural products of all kinds can support the economy, including rice and coconuts.

Speaking on behalf of the exporters in the room, I Dewa Agung Putra Agung, said that legislation needed to be improved to help eliminate problems in the supply chain around shipping and documentation. He explained how “The most urgent thing is how to make export documents” since the destination countries of Bali’s homegrown coffee, both in Asia and Europe, have strict and complicated requirements that Bali exporters need help to streamline their operations into.

The going rate for Bali coffee is now IDR 90,000 (USD 6) per kilo. The key areas for export-grade coffee in Bali are Kintamani in Bangli, Pupuan in Tabanan, and Wanasari in Buleleng. Coffee farmers in Bali and across Indonesia are exceptionally proud of their products and hope that the demand for the island’s premium beans will continue to help support rural communities long term.