Total coffee consumption in Indonesia 1990-2020
As one of the world’s leading producers of coffee, Indonesia had previously exported most of the coffee beans that it produces. The local coffee consumption was largely dominated by instant coffee and “kopi tubruk” – a thick and sweet drink made using coffee grounds. In recent years, however, a growing middle class and a more cosmopolitan, youthful population have changed consumer preferences. This is reflected in the spread of U.S.-based coffee shop giant Starbucks in Indonesia, which had 365 licensed stores in Indonesia in 2019.
Local coffee products are also gaining in popularity, and this can be seen in the instant coffee market. In 2016, local brand Pt. Javaprima Abadi, known for producing “kopi luwak”, held more than a third of the instant coffee market share. Indonesian consumers are also entering the “third wave of coffee consumption”, as seen in the rise of specialty roasters and artisanal coffee shops that emphasize local, single-sourced beans, especially in Jakarta and Bali. The rise of the artisanal coffee market, with its emphasis on buying local and forging stronger relationships between producers and roasters, has already been cited by some industry experts as having an impact on Indonesia’s coffee exports.