INDONESIA MACRO SURVEY REPORT April 2019
INDONESIA MACRO SURVEY REPORT April 2019
INDONESIA MACRO SURVEY REPORT April 2019
Province Checkpoint
Lampung 69
South Sumatera 109
Bengkulu 43
Jambi 19
North Sumatra 51
Indonesia coffee area Ache 30
The result of macro survey 2019/2020 crop in Sumatra island
Grand Total
713,998 3.0 3.7 3.4 15.1 10,765,260
Macro survey comparison: Yield in 4 province of southern Sumatra of 19/20
crop increase 32% compare to 18/19 crop, and cherry condition also much
higher to prove for the increasing of yield and production.
30.0
25.0
20.0
15.5
13.2 12.9
15.0 11.7
10.4
10.0
5.0
GRAND TOTAL 803,981 800,908 794,417 789,664 785,015 218,293 216,293 214,383 213,913 212,866
Result of interview farmers: About 70% famers
confirm the 19/20 crop is better than 18/19 crop
Farmers say the 19/20 crop is much better than 18/19 crop
Good crop 23
Bad Crop 7
Unchanged crop 3
Good crop Bad Crop Unchange crop
Production of Robusta: in southern Sumatra is very big
in 19/20 crop with 8.59 mn bag, increase 33%
compare to 18/19 crop.
Production of Robusta (mn bag) Change (%)
Island 2019/20 2018/19 2017/18 2016/17 2015/16 2018/19 2017/18 2016/17 2015/16
Southern
Sumatra 8.59 6.45 5.64 7.05 7.03 133.16% 152.16% 121.71% 122.06%
Northern
Sumatra 0.63 0.66 0.60 0.64 0.54 95.58% 105.86% 98.78% 116.83%
Java 1.42 1.33 1.21 1.44 1.33 107.24% 117.94% 98.60% 107.24%
Other island 1.05 1.05 0.90 1.02 1.07 100.00% 115.72% 102.15% 98.03%
Total 11.69 9.49 8.35 10.16 9.97 123.24% 139.95% 115.01% 117.23%
Production of Arabica: in the northern
Sumatra increase 36% compare to 18/19 crop
Production of Arabica (mn bag) Arabica and Robusta (% change)
Island
2019/20
2018/19 2017/18 2016/17 2015/16 2018/19 2017/18 2016/17 2015/16
Southern
0.05 0.05 0.05 0.05 0.06
Sumatra 101.8% 114.02% 99.44% 96.09%
Northern
2.29 1.68 1.61 1.89 1.75
Sumatra 136.2% 141.89% 121.36% 131.02%
Total 14.34 11.52 10.27 12.42 12.06 124.5% 139.63% 115.50% 118.98%
Indonesia coffee production: 11.69 mn bag of
Robusta and 2.66 mn bag of Arabica
Indonesia coffee production in 60kg million bags
16.00
14.00
2.66
12.00
2.26
2.08
2.04
10.00
1.92
8.00
6.00 11.69
10.16 9.97
9.49
4.00 8.35
2.00
0.00
2019/20 2018/19 2017/18 2016/17 2015/16
Robusta Arabica
Indonesia and PNG coffee production
Indonesia and PNG coffee production (60kg million bags)
18.00
16.00
1.00
14.00
1.10
0.80
12.00 0.95
0.90
10.00
8.00
14.34
6.00 12.42 12.06
11.52
10.27
4.00
2.00
0.00
2019/20 2018/19 2017/18 2016/17 2015/16
Rainfall in Lampung
400
350
300
250
200
150
100
50
0
Jan Feb Mar Apr May Jun Jul Aug Sep oct Nov Dec
350
300
250
200
150
100
50
0
Jan Feb Mar Apr May Jun Jul Aug Sep oct Nov Dec
400
350
300
250
200
150
100
50
0
Jan Feb Mar Apr May Jun Jul Aug Sep oct Nov Dec
400
350
300
250
200
150
100
50
0
Jan Feb Mar Apr May Jun Jul Aug Sep oct Nov Dec
350
2500
300
2000
250
200 1500
150
1000
100
500
50
0 0
Jan Feb Mar Apr May Jun Jul Aug Sep oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep oct Nov Dec
Average (2006-2019) 2017 2018 2019 Average (2006-2019) 2017 2018 2019
Weather and crop: overall low rainfall is god for coffee in
Indonesia
The rainfall and coffee production
3500 16
14.34
14
3000
12.45 12.45
12.03 12
2500 11.73 11.52
11.2
10.22 10
2000
1500 6.86
6
1000
4
500
2
0 0
2010 2011 2012 2013 2014 2015 2016 2017 2018
100.0%
80.0%
60.0%
Finish harvesting the
second crop
40.0%
0.0%
Apr.15 Apr.30 May.15 May.31 Jun.15 Jun.30 Jul.15 Jul.31 Aug Sep Oct.15 Oct.31 Nov.15 Nov.30 Dec.15 Dec.31 Jan Feb
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
70,000
25,000
60,000
20,000 50,000
40,000
15,000
33,210
30,000
10,000
20,000 17,900
10,015
5,000 10,000
0
0
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar COP/Kg of GB Price/Kg of GB
50,000
Exporters 15,825 13,050 21,000 7,125 9,525 31,077
40,000
Middlemen 1,266 1,044 4,500 570 762 7,000
30,000
0
13/14 14/15 15/16 16/17 17/18 18/19
60,000
Lampung 21,604 36,393 27,000 50,150 13,800 37,018
50,000
40,000
Medan&Java 10,802 18,197 13,500 25,075 6,900 18,509
30,000
10,000
0
13/14 14/15 15/16 16/17 17/18 18/19
100,000
70,000
Green coffee bean 22,044 25,237 66,000 37,000
60,000
Soluble coffee 4600 4500 9000 8,000
50,000
Roasted, gruond, decafe,
extracted 700 900 11,000 900 40,000
30,000
Other and non document 4,000 4000 10,000 5,000
20,000
10,000
Green coffee bean Soluble coffee Roasted, gruond, decafe, extracted Other and non document
mn bag 0.52 0.58 1.60 0.85
Internal consumption: Indonesia does has a big population combine with the coffee
consumption per capita is still low, that why I predict total domestic coffee consumption
of Indonesia continue rise very fast in next years, this issue can lead a hard competition to
buy coffee in low crop years
Chart Title Internal consumption per capita of Vietnam and Indo
6 2.00
5.4
5.1 1.80 1.78
5 1.67
4.6 1.60
4.2 4.3 1.50
4.1 1.45
3.9 1.40
4 3.8 1.33
3.6
1.20 1.24
1.20
1.14 1.14
2.9 1.04 1.04
3 2.7 1.00 0.97 0.98
0.95 0.96
0.91 0.92
2.3 2.4 0.87
2.08 0.80
1.92
2 1.75
1.58 0.60
1.43
0.40
1
0.20
0 0.00
11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20
Crop 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20
A 1.30 1.50 1.64 1.80 2.07 2.25 1.92 2.01 2.66
R 5.56 10.23 10.81 9.40 9.96 10.20 8.30 9.50 11.69
Production Total 6.86 11.73 12.45 11.20 12.03 12.45 10.22 11.51 14.35
Carryover at start 1.74 1.00 0.79 0.77 0.95 0.67 1.28 0.37 1.05
A 0.98 1.15 1.46 1.62 1.60 1.59 1.30 1.50 1.8
R 4.12 7.80 7.70 6.00 7.21 6.65 6.83 5.03 7.5
Export (variety) Total 5.10 8.95 9.16 7.62 8.81 8.24 8.13 6.53 9.30
Green coffee 8.02 7.19 6.85 5.07 7.8
Soluble(GBE) 0.79 1.05 1.28 1.46 1.5
Export (product) Total 8.81 8.24 8.13 6.53 9.30
Imports R &A 1.20 0.80 0.60 0.70 0.70 0.70 1.60 0.80 0.7
Internal Demand 3.70 3.80 3.90 4.10 4.20 4.30 4.60 5.10 5.4
Carryover at end 1.00 0.79 0.77 0.95 0.67 1.28 0.37 1.05 1.40
Supply 8.06 12.53 13.05 11.90 12.73 13.15 11.82 12.31 15.05
Demand 8.80 12.75 13.06 11.72 13.01 12.54 12.73 11.63 14.60
S&D balance -0.74 -0.22 -0.02 0.18 -0.28 0.61 -0.91 0.68 0.35
Crop forecast: According to the weather forecast of London, that the low rainfall from
June to Oct is very good for coffee, additional according to result of macro survey that
tree condition and planting condition for 20/21 crop are much better than normal, that
why at the moment I expect the production of 20/21 crop would be above normal
Tree and planting condition
3.6
3.5
3.4
3.3
3.2
3.1
3.0
2.9
2.8
2.7
2015/16 2016/17 2017/18 2018/19 2019/20
14.34
14
13
12.45 12.45
12.03
11.73 11.52
12
11.2
10.22
10
8
6.86
0
11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21
Conclusion:
• Although export reduce 20% but production of 18/19 crop still increase
close 13% compare with 17/18 crop and inline with what we have
predicted.
• The production of 19/20 crop could be 14.3 mn bags, 24.5% higher than
18/19 crop, the increase of production in 19/20 crop due to the good
weather condition, the increasing of coffee area and farmers improve their
investment for coffee plantation.
• The big production in 19/20 crop can cover for demand of domestic market
and speed up export in 2019 as big as the cycle of seven years ago.
• The price at farmgate now is historical low, but we have not seen yet the
signal that farmers abandon coffee or limit invest to coffee, but in a long
term that the increase of coffee area or the increase of production are
inline with the increasing of internal consumption, so that overall export
from Indonesia could be stable in next years.
Thank you very much
Thuyen