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Indonesia, a major global cocoa producer, employs an Export Duty policy on cocoa beans to support its domestic downstream processing industry. This policy, first implemented in 2010, aims to ensure an adequate supply of raw cocoa beans for local processors while simultaneously boosting the export of higher-value processed cocoa products (such as cocoa butter, cake, and powder).
​Current Structure of the Export Duty
​The legal basis for the export duty is typically governed by a Regulation of the Minister of Finance (PMK). While the latest regulation may be subject to periodic revision, the core mechanism remains a progressive export duty applied to cocoa beans (raw cocoa) based on the international benchmark price.

1. Progressive Tariff System
   ​The tariff is an ad valorem tax, meaning it’s a percentage of the export value. The percentage increases in steps corresponding to the fluctuating international price of cocoa beans.
   ​Note on Specific Rates: The exact price thresholds and corresponding percentage rates are subject to change based on the specific, latest Minister of Finance Regulation. Exporters must consult the most current PMK for precise figures, which are often adjusted monthly or quarterly.
   ​Historical Context: The initial and widely cited regulation was PMK No. 67/PMK.011/2010, which introduced rates up to 15% in the highest price bracket. Subsequent regulations maintain this progressive structure.
2. Objectives of the Policy
   ​The primary goals of imposing an export duty on raw cocoa beans are:
   ​Securing Domestic Raw Material Supply: By making raw bean exports less profitable compared to domestic sales, the government ensures a stable and affordable supply for local processing factories.
   ​Downstream Industrial Development: It serves as an incentive for companies to invest in processing and manufacturing facilities, shifting Indonesia’s role from a raw material exporter to a processed product exporter. This generates higher export value (added value).
   ​Revenue Generation: The duty contributes to state revenue, which can then be utilized to fund sector-specific programs.
   ​Upcoming Development: The Export Levy
   ​In a notable upcoming shift (as of mid-2025 planning), the Indonesian government intends to introduce an Export Levy on cocoa. This levy is distinct from the existing Export Duty.
   ​Purpose: The revenue generated from this new levy is specifically earmarked to finance cocoa development programs. These include initiatives such as replanting (to improve tree stock and yield), quality improvement, and capacity-building for farmers and human resources in the cocoa sector.
   ​Mechanism: It is anticipated that the overall export cost for cocoa will remain similar, but the revenue collected will be split—part as the existing Export Duty (State Revenue) and part as the new Export Levy (managed by an agency like the Plantation Fund Management Agency – BPDPKS, similar to the palm oil fund).
   ​Implementation Timeline: This new levy policy is projected to take effect in the second half of 2025, pending the issuance of a new Minister of Finance regulation.
   ​Impact and Implications
   ​The export duty policy has had several significant impacts on the Indonesian cocoa sector:
   ​Positive Impacts (on Downstream Industry):
   ​Increased Processing Capacity: The policy successfully stimulated the growth of the domestic cocoa processing industry, leading to a substantial increase in the export volume and value of processed cocoa products.
   ​Diversification: Indonesia has managed to diversify its cocoa exports away from solely raw beans, enhancing its position in the global processed cocoa market.
   ​Negative Impacts (on Bean Producers):
   ​Price Reduction for Farmers: The duty can lead to lower domestic prices for cocoa beans, as exporters pass on the tax burden to producers. This potentially reduces the profitability and surplus for cocoa farmers.
   ​Decreased Raw Bean Exports: As intended, the volume of raw cocoa bean exports has decreased significantly since the policy’s implementation, making Indonesian beans less competitive in the international raw bean market.
   ​Conclusion
   ​Indonesia’s current policy on cocoa bean exports is characterized by a progressive export duty aimed at supporting industrialization. The impending introduction of an Export Levy signals the government’s dual focus: continuing to support downstream processing while also securing dedicated funding for the upstream development and quality improvement of the raw cocoa sector. Businesses involved in the trade must closely monitor the official regulations from the Minister of Finance and the Ministry of Trade for the most up-to-date tariff schedules and the final details of the new export levy.

Indonesia’s key export commodities, namely palm oil, cocoa, and rubber, are experiencing highly favorable conditions in the United States market. This “red carpet” treatment is attributed to a combination of strong demand and supportive tariff policies, creating a significant opportunity for substantial profits for Indonesian producers and exporters. The article highlights that the positive reception in the U.S. provides a critical boost to these sectors, which are pillars of the Indonesian economy. The advantageous position in one of the world’s largest consumer markets is expected to drive increased export volumes and revenue, further strengthening Indonesia’s trade balance. This development underscores the strategic importance of these commodities and their growing competitiveness on the global stage.

Source : www.cnbcindonesia.com

The global black pepper market is experiencing a significant shift in 2025, marked by a notable surge in prices. This upward trend is primarily driven by a supply-demand imbalance, with declining global production failing to keep pace with steady and, in some segments, rising consumption. Market reports and forecasts point to a volatile but profitable year for producers, while importers and consumers face higher costs.
Price Trends: A Reflection of Supply Constraints
Throughout 2025, black pepper prices have risen to unprecedented levels. This is a direct consequence of a global supply crunch. Several key factors are contributing to the limited supply:
1. Declining Global Production: For the fourth consecutive year, global pepper production is expected to decline. This trend is largely due to adverse weather conditions, such as unseasonal rains and prolonged droughts, in major producing countries.
2. Shifting Crop Focus: In many regions, particularly Vietnam, farmers are shifting from pepper to more lucrative crops like coffee and durian. This has reduced the planted area and overall output of pepper.
3. Low Inventories: Years of underproduction have resulted in significantly low inventory levels worldwide. This means there’s little buffer stock to absorb supply shocks, making the market highly sensitive to any production shortfalls.
As a result, prices are experiencing a sharp upward trajectory. While there might be minor fluctuations, the overall trend is clear: the cost of black pepper is likely to remain high throughout the year.

Demand Trends: Stable and Expanding
Despite the rising prices, global demand for black pepper remains robust, driven by its versatile applications across various industries.
– Culinary and Food Industry: Black pepper continues to be a staple spice in households and the foodservice sector. Its role as a fundamental flavor enhancer in a wide range of cuisines ensures a stable baseline demand.
– Health and Wellness: Consumers are increasingly aware of the health benefits of black pepper, such as its antioxidant and anti-inflammatory properties. This has fueled demand in the functional food and nutraceutical sectors.
– Industrial and Non-Food Applications: The spice is also seeing increased use in the pharmaceutical, cosmetics, and personal care industries. Its medicinal properties make it a valuable ingredient in therapies and beauty products.
– Emerging Markets: Demand is particularly strong in Asia-Pacific, led by major importers like China, which has resumed large-scale purchases after a period of lower activity. Europe and the U.S. also maintain steady demand, driven by consumer preferences for natural ingredients and ethnic cuisines.
The combination of limited supply and resilient, even expanding, demand from these key segments creates strong market pressure for continued price hikes.
Key Market Players and Their Roles
The market dynamics are heavily influenced by the major producing and importing nations.
1. Producing Countries:
– Vietnam: As the world’s largest producer and exporter, Vietnam’s harvest is a primary determinant of global prices. Lower-than-expected yields in 2025 have been a key driver of the price surge.
– Brazil, Indonesia, and India: These countries, also major producers, have likewise been affected by climate challenges and shifting agricultural priorities, further tightening the global supply.
2. Importing Regions:
– United States and European Union: These regions are consistently major importers, with their demand stabilizing the market.
– China: The renewed and strong purchasing activity from China is a critical factor supporting the current high prices.
In conclusion, the black pepper market in 2025 is defined by a significant price increase driven by a structural supply deficit. While this poses challenges for buyers, it also presents a lucrative environment for producers. The market’s future remains sensitive to weather patterns, agricultural policies, and global economic stability, all of which will shape its trajectory for the remainder of the year and beyond.

The Directorate General of Taxes works together with stakeholders to collect state revenue through efficient, effective, honest, and fair tax administration. CV. Agrofarm Niaga Sejahtera collaborates with KPP Pratama Sukabumi as part of our commitment to comply with tax regulations and be a good taxpayer. This partnership was proved by KPP Pratama Sukabumi team visit to CV. Agrofarm Niaga Sejahtera’s headquarters on Wednesday July 2, 2025. KPP Pratama Sukabumi team was warmly welcomed by Mrs. Risma Amelia as President Director and Mr. Muhammad Fathurrohman as COO of CV. Agrofarm Niaga Sejahtera.

Trading and shipping cocoa beans

Posted on August 20, 2025

When discussing cocoa trading, a clear distinction has to be made between the actual or physical markets and the futures or terminal markets. Nearly all cocoa coming from origin countries is sold through the physical market. The physical market involves the type of business that most people normally think of when talking about trading in commodities. The structure and length of the cocoa marketing channels differ from region to region within the same producing country as well as across producing countries. At one extreme of the spectrum, the marketing channel between cocoa farmers and exporters encompasses at least two middlemen: small traders and wholesalers. Small traders buy cocoa beans directly from farmers, visiting them one by one. In a second stage, small buyers sell the beans to wholesalers, who in turn will re-sell them to exporters. At the other extreme of the spectrum, cocoa beans are sold directly to exporters by farmers’ cooperatives or even directly exported by the co-operative. Once cocoa beans have been graded and loaded into cargo vessels, they are shipped either in new jute bags or in bulk. In recent years, shipment of cocoa beans in bulk has been growing in popularity because it can be up to one third cheaper than conventional shipment in jute bags. Loose cocoa beans are loaded either in shipping containers or directly into the hold of the ship, the so-called “mega-bulk” method. The latter mode is often adopted by larger cocoa processors.

Source : icco.org