Indonesia’s Commodity Powerhouse Status
Indonesia sits at the heart of global agricultural trade, commanding significant market share in three crucial commodities: palm oil, coffee, and cocoa. But which one offers the brightest opportunities for exporters and logistics providers in 2025?
With the EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA) set to eliminate tariffs on 98% of goods by 2027 and Indonesia’s exports to the EU projected to jump 60%, understanding these three commodities has never been more critical for your business strategy.
Let’s dive into the data and recent market developments.
🌴 Palm Oil: The Undisputed Champion
Market Position: #1 Global Producer & Exporter
Export Value (2024): ~$23-27 billion USD annually
Key Markets: India, China, EU, Pakistan, Bangladesh
Why It’s a Goldmine:
Volume Dominance – Indonesia produces over 55% of global palm oil supply, with production of 48.16 million tons in 2024. Despite a slight decline from 2023, exports remain massive – reaching $11.43 billion in just H1 2025, marking a 24.81% year-over-year increase.
Infrastructure Ready – Established supply chains from Sumatra and Kalimantan ports (Belawan, Dumai, Samarinda) to global destinations make operations smoother.
Growing Demand & New Markets – China has requested guaranteed palm oil supply, with exports to China reaching $2.72 billion in 2024. The EU-Indonesia CEPA agreement will allow 1 million tons of CPO at zero tariff annually starting 2027.
Logistics Opportunities:
- Bulk liquid cargo transportation
- Temperature-controlled storage solutions
- Sustainable supply chain certification services
- Last-mile distribution in importing countries
Challenges to Navigate:
- EU Deforestation Regulation (EUDR) compliance required – but offset by new CEPA trade agreement benefits
- Production decline from 50.07 million tons (2023) to 48.16 million tons (2024) due to biodiesel program (B40 mandate) absorbing more domestic supply
- Competition from Malaysia as alternative supplier
- Export volatility – January 2025 saw 24.1% decline to $1.44 billion, though H1 2025 rebounded strongly
- Sustainability certification requirements (RSPO, ISPO) becoming non-negotiable
☕ Coffee: The Premium Player
Market Position: #4 Global Producer & Exporter (after Brazil, Vietnam, Colombia)
Export Value (2024/25): ~$1.5-2 billion USD annually
Export Volume (2024/25): 7.25 million bags (60kg each) = ~435,000 metric tons
Key Markets: USA (largest buyer at 36,624 metric tons in 2023), Japan, Italy, Germany, Malaysia, Egypt, India
Why It’s Profitable:
Specialty Coffee Boom – Indonesian coffee, especially Sumatra Mandheling, Aceh Gayo, and Kopi Luwak, commands premium prices in specialty markets. Ready-to-drink (RTD) coffee sales growing rapidly.
Production Recovery – 2024/25 production forecast at 10.9 million bags, showing recovery from severe weather impacts in 2023/24. Exports projected to reach 6 million bags (up from 4.3 million).
Diverse Varieties – Both Arabica and Robusta give exporters market flexibility. Indonesia contributes 5% of global coffee exports.
Logistics Opportunities:
- Small-batch, high-value cargo handling
- Quality preservation (moisture control, pest prevention)
- Direct trade facilitation between farmers and international buyers
- E-commerce fulfillment for specialty coffee brands
Challenges to Navigate:
- Smaller volumes compared to Brazil and Vietnam
- EU exports dropped 66% in 2023/24 – EUDR regulations impacting shipments
- Quality consistency across different regions remains an issue
- Rising domestic consumption (4.8 million bags projected for 2024/25) reducing exportable supply
- Climate change and weather volatility affecting production cycles
🍫 Cocoa: The Emerging Contender
Market Position: #3 Global Producer (after Ivory Coast, Ghana)
Export Value (2024): USD 2.62 billion for processed cocoa (up from USD 1.2 billion in 2023)
Production Volume (2023/24): 160,000-180,000 metric tons annually (3.65% of global production)
Key Markets: India (58% of powder exports), USA ($318.33M in imports from Indonesia 2024), Malaysia, China (28% of powder exports), EU, Philippines
Why It Has Massive Potential:
Value-Added Processing Boom – Indonesia is now the 4th largest exporter of processed cocoa products, with 70-80% of production exported to over 100 countries. The focus has shifted from raw beans to processed products (cocoa powder, cocoa butter).
Global Supply Crisis = Opportunity – Cocoa prices surged 66% in London and 64% in New York by late 2024 due to supply deficits in West Africa (Ivory Coast & Ghana). This is the 4th consecutive year of global cocoa deficit.
Quality Improvement Trajectory – Indonesian farmers are winning international awards (Cacao of Excellence 2021 gold award), and only 10% of exports are currently “fine” or “flavour” cocoa – massive room for premium positioning.
Logistics Opportunities:
- Bean-to-bar processing facility development
- Quality grading and certification services
- Container shipping optimization from Makassar port
- Value-added processing before export
Challenges to Navigate:
- Aging plantations – Over 60% of cocoa plants are over 20 years old, with 10% from unknown quality seed sources
- Low productivity – Less than 0.4 tons per hectare vs. global averages
- Smallholder dominance (99.88% of production) creates quality consistency issues
- Only 50% of farmers ferment beans properly, limiting premium pricing opportunities
- Farmer reluctance to replant old trees due to income dependency
- Regional concentration risk – 75% of production comes from Sulawesi (Central Sulawesi 19.9%, Southeast Sulawesi 16.1%)
📊 The Verdict: Which Is THE Goldmine?
For Volume & Reliability: PALM OIL 👑
Despite recent challenges including a 24% drop in early 2025 and production declines, palm oil remains Indonesia’s dominant commodity with exports totaling $11.43 billion in H1 2025 and maintaining its position as the world’s largest producer.
Best for: Large logistics companies, bulk carriers, storage facility operators
Recent Update: The EU has agreed to allow Indonesia to export 1 million tons of CPO annually at zero tariff once their trade agreement enters into force, with exports beyond that limit subject to a 3% tariff.
For Margins & Growth: SPECIALTY COFFEE 💎
Indonesia’s coffee exports are projected to reach 5.2 million bags in 2024/25, marking an 18% increase from the previous year, with the United States remaining the largest destination market. Indonesia ranks 4th globally with exports of 7.25 million bags.
Best for: Boutique logistics, cold chain specialists, e-commerce fulfillment, quality-focused traders
For Future Potential: COCOA 🚀
Indonesia’s processed cocoa exports reached USD 2.62 billion in 2024, more than doubling from USD 1.2 billion the previous year. Indonesia is now the 4th largest exporter of processed cocoa products, with 70-80% of production exported to over 100 countries.
Best for: Value-added logistics, processing partnerships, regional distribution networks
Market Opportunity: Global cocoa prices surged 66% in London and 64% in New York by late 2024 due to supply constraints in West Africa, creating significant opportunities for Indonesian exporters.
🎯 Action Steps for Exporters & Logistics Providers
If You’re Starting Out:
- Assess your capabilities (bulk vs. specialized handling)
- Research certification requirements for your target markets
- Build relationships with producer associations
- Understand destination country regulations
If You’re Scaling:
- Diversify across multiple commodities to reduce risk
- Invest in sustainability certifications (increasingly mandatory)
- Develop value-added services (processing, packaging, quality control)
- Explore digital trade platforms and direct buyer connections
For Logistics Providers:
- Develop commodity-specific expertise (temperature control, moisture management)
- Build port-proximity storage facilities
- Offer compliance documentation services
- Create track-and-trace systems for quality assurance
💡 The Smart Strategy: Portfolio Approach
Rather than choosing just one, savvy logistics companies and traders are building diversified portfolios:
- Palm oil for volume and stability
- Coffee for margins and differentiation
- Cocoa for future growth potential
Each commodity has different peak seasons, price cycles, and market dynamics—diversification smooths cash flow and reduces risk.
🌏 Indonesia’s Commodity Future
With RCEP (Regional Comprehensive Economic Partnership) now in effect and Indonesia’s focus on downstream processing, the commodity export landscape is evolving rapidly.
The goldmine isn’t just in the commodities themselves—it’s in the value-added services, sustainable supply chains, and efficient logistics that get these products to global markets.
📰 Latest Industry Updates (2025)
Palm Oil:
- Indonesia’s palm oil exports reached $11.43 billion in H1 2025, up 24.81% YoY (Jakarta Globe, July 2025)
- China requests guaranteed palm oil supply amid rising demand – $2.72 billion in agricultural exports to China in 2024 (Jakarta Globe, May 2025)
- Production decreased to 48.16 million tons in 2024 vs 50.07 million tons in 2023 (Indonesia Investments)
Coffee:
- Indonesia’s 2024/25 coffee production forecast at 10.9 million bags, showing recovery from weather impacts (USDA FAS, May 2024)
- Green bean exports projected to reach 6 million bags in 2024/25, up from 4.3 million (USDA FAS, July 2025)
- USA remains largest export destination for Indonesian coffee (Databoks, June 2025)
Cocoa:
- Processed cocoa exports surged to USD 2.62 billion in 2024, more than doubling from USD 1.2 billion in 2023 (Cekindo, March 2025)
- Global cocoa prices increased 66% in London, 64% in New York by late 2024 due to West African supply constraints (Kompas, Feb 2025)
- Indonesia contributes 3.65% to global cocoa production as 3rd largest producer (Indonesia Investments)
📚 Key References & Data Sources
- BPS – Statistics Indonesia – Official government trade statistics
- USDA Foreign Agricultural Service
- Industry Associations
- Market Intelligence
🎯 TAKE ACTION NOW
For Exporters & Traders:
🔴 URGENT: With EU-Indonesia CEPA set to eliminate tariffs on 98% of goods by 2027, NOW is the time to position your business. Indonesia’s exports to the EU are projected to jump 60% once the agreement takes effect.
📞 Schedule a FREE Consultation with Mora Multi Berkah:
- ✅ Commodity export compliance audit
- ✅ Market entry strategy for your target markets
- ✅ Supply chain optimization assessment
- ✅ Documentation & certification roadmap
📧 Email: info@m2b.co.id
☎️ WhatsApp: +62 812-6302-7818
🌐 Website: www.m2b.co.id
For Logistics & Freight Forwarders:
💼 Strategic Partnership Opportunities:
Mora Multi Berkah is actively seeking logistics partners who can handle:
- ✅ Temperature-controlled cargo for coffee & cocoa
- ✅ Bulk liquid transportation for palm oil
- ✅ RSPO/ISPO certified supply chain management
- ✅ Multi-country distribution networks
Let’s discuss partnership opportunities:
📧 info@m2b.co.id | 📱 WA: +62 812-6302-7818
💬 Connect With PT. Mora Multi Berkah
Which commodity presents the biggest opportunity for your business in 2025?
Join the conversation and get daily insights:
📱 Instagram: @moramultiberkah
📘 Facebook: Mora Multi Berkah
🎥 YouTube: @moramultiberkahofficial893
📧 Email: info@m2b.co.id
💬 WhatsApp: +62 812-6302-7818
🔔 Don’t miss our next deep-dive:
“Navigating EUDR Compliance: Your 2025 Action Plan for Indonesian Agricultural Exports”
👉 Follow us on social media to get notified when it drops!
#IndonesiaExport #Logistics #InternationalTrade #PalmOil #Coffee #Cocoa #SupplyChain #CommodityTrading #ExportBusiness #FreightForwarding #EUDR #Sustainability #B2B #TradeCompliance #IndonesiaBusiness