23 February 2025 – According to Barchart.com Arabica Coffee 4/5 Mar ’25 (XFH25) shows the price movement over a 6-month period, ending on February 21st, 2025. The price closed at 487.90, down 2.10 (-0.43%) for the day. The chart indicates a significant upward trend from late October/early November, peaking around February 11th, 2025, before experiencing a recent decline. (Arabica Coffee Market Price Reaches All-Time High Since February 1977)
As one of the leading coffee-producing countries in the world, Indonesia holds a unique position in the global coffee market. While world coffee prices experience significant fluctuations, the price of Arabica coffee in Indonesia, particularly for the double pick variant, remains stable at around Rp. 110,000 to Rp. 115,000 per kilogram. This phenomenon is noteworthy, especially considering that many other coffee-producing countries are affected by changes in international prices.
Why Is There Price Stability?
Several factors contribute to the stability of Arabica coffee prices in Indonesia:
- Quality and Uniqueness of the Product: Indonesian Arabica coffee is known for its high quality and distinctive flavor. Varieties such as Sumatra Mandheling, Java, and Bali have unique characteristics that make them popular in both domestic and international markets. This consistent quality helps maintain stable prices, even when global market prices fluctuate.
- Strong Domestic Demand: The demand for coffee within the country continues to grow, driven by the rising coffee culture in Indonesia. Cafés and coffee shops are increasingly emerging, creating a robust market for local coffee. This steady demand helps keep prices from being significantly affected by global price changes.
- Good Production Management: Coffee farmers in Indonesia have adapted well to market conditions. By implementing sustainable farming practices and improving the quality of their harvests, they can maintain a stable coffee supply. This contributes to price stability, as a consistent supply reduces the risk of price drops due to oversupply.
- Government Policies: Support from the government in the form of training programs, access to technology, and financial assistance also plays a crucial role in maintaining price stability. Policies that support coffee farmers help them produce efficiently and maintain coffee quality.
Impact of Global Price Fluctuations
Although global coffee prices experience ups and downs, their impact on prices in Indonesia is not very significant. This is due to several reasons:
- Separate Markets: The Indonesian coffee market has different characteristics compared to the global market. Many local buyers prefer to purchase coffee directly from farmers, so the prices set are more influenced by local conditions than by international prices.
- Availability of Resources: Indonesia has abundant and diverse natural resources, allowing farmers to produce coffee at lower costs. This helps keep prices competitive, even amid global price fluctuations.
- Focus on Quality: Coffee farmers in Indonesia prioritize quality over quantity. By producing high-quality coffee, they can set more stable prices and avoid negative impacts from global price fluctuations.
Conclusion
The stability of Arabica coffee prices in Indonesia, especially for the double pick variant, demonstrates that the local coffee market has strong resilience against global price fluctuations. With high product quality, strong domestic demand, good production management, and government support, Indonesia can maintain coffee prices in the range of Rp. 110,000 to Rp. 115,000 per kilogram.
As coffee suppliers, we believe that maintaining quality and sustainability is key to facing challenges in the global market. By continuing to invest in good farming practices and strengthening relationships with local consumers, we are confident that coffee prices in Indonesia will remain stable, benefiting both farmers and consumers across the country.
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Interested in Indonesia Arabica Coffee Beans? Call us on WhatsApp anytime at +62 811 6380 606 or email info@specialtycoffee.id
