TEMPO.CO, Jakarta - Domestic cocoa production this year is expected to decrease by 10 percent compared to that in the previous year at around 400,000 tons.
“Last year, the production reached 400,000 tons, and I predict that it will decrease this year. There was El Nino last year. Meanwhile, there’s going to be a lot of rain this year,” Sindra Wijaya, executive director of the Indonesian Cocoa Industry Association (AIKI) said in Jakarta on Friday, August 26, 2016.
Sindra revealed that the decreasing production could harm the domestic cocoa processing industry since the current production capacity is 800,000 tons. He said that the AIKI has put a lot of faith in the government’s Cocoa National Movement Program (Gernas) with an annual budget of Rp1 trillion (US$76.9 million) aimed at boosting the productivity.
“However, in 2016, the budget was slashed to Rp235 billion (US$18 million). This has been our concern. Productivity is decreasing, and the budget to boost the production has been cut,” Sindra added.
In addition, he revealed that cocoa imports have been limited under Agriculture Ministry’s Regulation No. 04/Permentan/PP.340/2/2015. Sindra explained that the regulation requires laboratory examinations to be conducted in cocoa origin countries. Since the majority of imported cocoa is from Ghana and Ivory Coast, the technical requirement will be impossible to be met as the two countries have no sufficient facilities.
However, Sindra argued that the regulation was not suitable for cocoa. When being processed domestically, cocoa beans are well-sterilized, so that they should not be treated as fruits and vegetables.
“After urging the government, the Agriculture Ministry has relaxed the regulation. There has been a revision, and it will be signed by the Agriculture Minister,” Sindra added.
