Adding Product Value, Coffee Business Actors Optimistic About Entering 2025

Several coffee business operators in the country are optimistic about approaching 2025 by adding value to their products. Some of the measures taken include community empowerment, green economy, and highlighting regional uniqueness. The added value of these products has the potential to attract investors.

Micro, small, and medium enterprises (MSMEs) in the coffee sector also participated in the BRI Expo(rt) 2025 at ICE BSD, Tangerang, Banten, last week. Among the 1,000 MSMEs participating in the expo, there were many coffee entrepreneurs from various regions.

One of those participating in the expo is Java Halu Coffee, a farmer, processor, and exporter from Gunung Halu, West Bandung Regency, West Java. The UMKM focuses on processing coffee into green beans (raw coffee beans) and has been exporting independently since 2019.

Java Halu has a 4-hectare coffee plantation. Meanwhile, the coffee plantation with the farmer group is 60 hectares. “The processing capacity so far in a year of harvest is 80 tons of green beans. In a year, Jawa Halu Coffee exports 20 tons of specialty grade Arabica coffee,” said Java Halu Coffee Roaster Raisya Gistiani Setiawan, on Sunday (2/2/2025).

The largest buyers come from the Middle East, followed by other countries such as the United States and Europe. Additionally, coffee has also started to be marketed to China, Japan, and South Korea.

To produce coffee, Java Halu Coffee also pays attention to environmental, social, and governance (ESG) factors. One of their initiatives includes employing female workers. As many as 80 percent of the 160 farmers who regularly work at Java Halu Coffee are mothers from Gunung Halu.

“There their education level is low. There are still many traditions of marrying young. Apart from that, being a migrant worker,” said Raisya.

Upon returning from abroad, they are no longer in their productive years. However, the living conditions require them to continue earning an income. Therefore, these women are invited to do light work, such as drying and sorting coffee.

Regarding sustainability, Java Halu Coffee carries zero waste or minimizes waste. In a day, they receive 10 tons of coffee cherries. When processing coffee cherries, the accumulated waste reaches 5 tons. The waste accumulates and releases acidic and hot liquids that are harmful to the environment. For this reason, there must be waste management within three days.

Wet coffee cherry waste is processed and time is short and efficient. From the dried coffee skin shell, Java Halu creates fire starter fuel and coffee briquettes. The fire starter is a renewable fuel that has been exported to South Korea, although so far only about 1 ton.

In addition, coffee cherry waste is also used as raw material for briquettes, which have been exported to the Middle East in the amount of 700 kg. The utilization of wet coffee cherry pulp is also used for maggot (fly larvae) feed. After the maggots grow to a certain size, they are then dried. The maggots are sold again for fish and bird feed. The leftover maggot food mixed with waste can be used as organic fertilizer in gardens.

“The move is also to maintain coffee processing standards that are acceptable in both local and international markets. Moreover, we want Indonesian coffee to go international. Waste is a big issue,” Raisya said.

Raisya stated that the coffee market prospects in 2025 are still good both domestically and internationally. In 2025, Raisya said, Java Halu is committed to improving the quality of coffee products.

Regarding funding from banking, Java Halu has no investors, relying instead on its own capital. This has also been an obstacle during each harvest season. Until now, they have not found a solution regarding funding from banks. “We hope to find a funding partner. So far, funding has come from profit management,” said Raisya.

Bringing up regional specialties

The UMKM player who wants to spread his wings by participating in the expo is Tori Coffee from Toraja, South Sulawesi. The coffee business that was established five years ago wants to expand to Jakarta. By participating in the expo, Tori Coffee also gets the opportunity to meet buyers from various countries.

The founder of Tori Coffee, Citra Wulandari, stated that the coffee business prospects in Jakarta are still substantial despite the tight competition among the proliferating coffee shops. Citra believes that if one presents a different offering, they can compete. Moreover, they bring Toraja coffee.

“Although we bring it from the region, if the branding is good, it should be able to compete with coffee shops in Jakarta. We bring up ethnic characters in a modern way,” said Citra.

He serves a variety of coffee from various regions in Toraja. Toraja coffee is nicknamed The Queen of Coffee. With that nickname, according to him, capital for local brands can compete with other well-known brands.

In the notes of Kompas, the balance of flavors makes Toraja coffee nicknamed the Queen of Coffee. In fact, for a long time, Toraja coffee has been famous in a number of countries, one of which is Japan. (Kompas.id, 2018)

“Our coffee shop design is also a combination of industrial and Toraja ethnic. Our coffee shop and packaging design elevates the character of Toraja combined in a modern way,” he said again.

Citra predicts that the coffee business this year will skyrocket. Moreover, Indonesia will host the 2025 World of Coffee Championship which is expected to have a positive impact on coffee business actors.

However, the challenges of the coffee business start from the upstream. He gave an example, in Toraja, the demand for coffee is high, but the quantity available is still small. Tori Coffee is exploring becoming a driver for farmers to further develop coffee farming.

Regarding the expansion to Jakarta, Citra has also thought about financing schemes to banks and investors. However, actually, she hopes that there are investors who are interested in working together. In addition, banks are also expected to be able to provide softer loans. Moreover, she had borrowed when she first founded the business.

Another participant who attended the event was the owner of Wastusada Slowbar Tika Syamsuri. Wastusada is a slowbar coffee shop in Solo, Central Java, established since October 2023. This coffee shop offers classic menus, including filter coffee and espresso based. Customers can also learn about coffee at his coffee shop in Solo.

According to Tika, the proliferation of coffee shops is a challenge in itself. Therefore, coffee shops must have a unique character that differentiates them from other shops. In addition, coffee shops must build customer trust.

Tika started her business by partnering with investors who provided a place of business. “Small MSMEs are usually the ones who have a hard time renting a place. That’s the way I do it. As long as it can be covered this way (working with investors), I don’t need a loan yet,” said Tika.

Tika also sees the coffee business prospects in 2025 as promising. Amid the mushrooming of coffee shops with modern machines, Wastusada appears with a classic face. “Everything classic is new. Among the new, we have our own character,” said Tika.

Investors in western countries, they see the values carried by MSMEs.

The Director of the Institute for Development of Economics and Finance (Indef) Program, Eisha M Rachbini, assessed that by carrying a number of values ranging from the environment, empowerment, and ethnic elements, which are aspects of ESG, it provides added value. In the coffee processing process, there is also an element of inclusivity when raising ethnic elements.

Various efforts are made by MSMEs to attract investors. On the other hand, investors prioritize aspects of inclusivity, diversity, and the green economy.

MSMEs also usually look for ways to get investors by participating in various coffee expos and championships. MSME creativity needs to be supported and improved. Moreover, in the country there is a diversity of coffee, plus the emergence of ESG aspects which are added value and investor attraction.

“Especially investors in western countries, they see the values carried by MSMEs,” said Eisha.

Eisha assessed that the trend of coffee consumption in the future will remain high. Moreover, coffee lovers will continue to consume coffee. In addition, they will look for diverse variations. However, MSMEs need to be observant in determining market segmentation amidst the current economic turmoil.