Indonesia coffee

Indonesia is the fourth largest coffee producer in the world. More than 1.3 million smallholder farmers depend on coffee for their livelihoods, and around 95% of the country's coffee area is managed by smallholders.

The arabica coffee grown in the highlands of North Sumatra and Aceh has a unique taste profile that is hard to find anywhere else. Dutch and European speciality coffee buyers know this well. But the sector is under pressure. Rising temperatures, erratic rainfall, and more frequent extreme weather events affect yields and quality. As a result, these challenges put farmer livelihoods and future coffee supplies at risk.

Sector stakeholders in North Sumatra and Aceh partner with CBI to strengthen climate resilience, improve sector coordination, and support sustainable market access.

European market requirements are changing fast. Traceability, the EU Deforestation Regulation (EUDR), and pesticide residue limits are reshaping what buyers expect. The Netherlands is one of Europe's main coffee trading hubs, making Dutch importers and traders important partners in building more resilient and transparent supply chains.

Are you an importer, buyer, cooperative, service provider, or organisation with a stake in Indonesian coffee? We seek partners who share a mutual interest in a more climate-resilient coffee sector.

Project purpose 

Indonesia's arabica coffee sector in North Sumatra and Aceh faces serious and growing challenges, including climate change. Projections suggest that suitable land for arabica production in Indonesia could halve by 2050.

To strengthen the sector, stakeholders and actors must navigate complex factors. These include necessary increased productivity, engaging a younger generation to farm, streamlining fragmented supply chains, and strengthening coordination between sector players. While many smallholders currently work on small plots using traditional methods, and formal cooperative structure still need developing, there are opportuties. Also, establishing a stronger national vision for the coffee sector helps align past donor programmes around a shared vision.

At the same time, European buyers are setting higher standards. Requirements related to EUDR compliance, traceability, and glyphosate residue limits are forcing important adaptations for exporters and cooperatives aiming to access the EU market or expand their presence. Meeting these demands requires close coordination, starting directly at farm level and extending across the entire supply chain.

The sector offers important opportunities. Global demand for coffee continues to exceed supply, Indonesian arabica holds a valued position in speciality markets. Crucially, many stakeholders embrace the need for collective action to address climate risks and strengthen the sector's future competitiveness.

Project partners focus on 4 complementary pathways during the CBI project:

• Strengthening sector coordination and collective action among public and private stakeholders.
• Promoting climate-resilient coffee production practices, including agroforestry and regenerative approaches.
• Improving access to climate-resilient coffee varieties, seedlings, and professional support services.
• Strengthening cooperatives, increasing youth engagement, and facilitating sustainable market access for coffee producers and exporters.

During this phase, the project will test and refine promising approaches while building stronger coordination between sector actors. The lessons learned will help shape future scaling efforts.

Become a partner 

We are particularly interested in connecting with:

• Dutch and European importers and buyers who source Indonesian arabica coffee and want to build more resilient, traceable, and future-proof supply chains. As one of Europe's main coffee trading hubs, the Netherlands plays an important role in connecting market requirements with practical solutions on the ground.
• Cooperatives and SME exporters in North Sumatra and Aceh who want to professionalise and improve their market position, particularly those already engaging with European markets or willing to do so.
• Non-governmental organisations (NGOs) and knowledge partners with hands-on experience in climate resilience, agroforestry, or cooperative development in North Sumatra or Aceh who want to connect their work to a broader effort.
• Sector organisations, platforms, and government bodies willing to be part of a structured dialogue process aimed at developing a shared roadmap for the region.

Reach out now 

What does a partnership with CBI look like? 

CBI does not provide funding. We offer coordination, connection, technical support and a structured process to work together.

If you are a European buyer and importer, that means introductions to frontrunner exporters and cooperatives who are working on traceability and quality, as well as involvement in sessions where buyers and producers work through EUDR requirements and market standards together. The project offers opportunities to engage directly with cooperatives and exporters that are working to improve climate resilience, traceability, and compliance with future EU requirements.

If you are an organisation working in Indonesia, it means being part of a coordination process that is trying to be more than just another meeting series. We are working to build a shared agenda, test specific approaches, and document what comes out of it in a way that is usable.

If you are a knowledge and sector partner, we offer a context where your expertise contributes to a shared agenda rather than a standalone project.

There is no fee to become a partner. We ask for your time, knowledge, and genuine commitment to the process. We ask partners to cover their own costs for travel and related activities.

Partners

CBI carryies out the inception phase until September 2027 in North Sumatra and Aceh.  Several organisations are already active and identified in the arabica coffee sector. We welcome collaboration with organisations that have commitment and the ability to work towards a more climate‑resilient and inclusive coffee sector.

If your organisation works on sustainability, climate adaptation, farmer support, or value‑chain development in North Sumatra or Aceh, we look forward to exploring potential partnership opportunities with you.

Collaborate with us

Would you like to help build a more climate-resilient coffee sector in Indonesia? Click the button below to express your interest.

For questions or more information, please contact Femke Dekker. We would be glad to hear from you.

Reach out now 

About CBI

CBI promotes sustainable production and trade between low-and middle-income countries and the Netherlands and Europe. We partner with small and medium-sized enterprises (SMEs) and their ecosystem to strengthen their social and environmental sustainability. CBI is part of the Netherlands Enterprise Agency and commissioned by the Netherlands Ministry of Foreign Affairs.