Indonesia’s coffee industry is entering a promising new phase. In July 2025, the United States officially reduced its import tariff on Indonesian coffee from 32 percent to 19 percent. This breakthrough followed a direct conversation between President Prabowo Subianto and U.S. President Donald Trump, reflecting a shared interest in strengthening bilateral trade relations.
This revised tariff gives Indonesian coffee a significant edge. Compared to Vietnam, which currently faces a 20 percent rate, and Brazil, which is subject to 50 percent, Indonesian coffee now has a clearer path to penetrate the U.S. market at more competitive pricing. For exporters, this translates into better margins and a stronger incentive to tap into one of the world’s largest and most dynamic coffee markets.
However, this momentum is not only about tariff adjustments. The Indonesian Coffee Exporters Association (AEKI) urges exporters to go beyond raw beans. Instead of focusing solely on green coffee, producers are encouraged to develop value-added products such as roasted beans, ground blends, drip bags, and ready-to-drink coffee. This strategy does not just increase export value. It also boosts the domestic coffee ecosystem and encourages local innovation.
The Indonesian government is also playing a proactive role in facilitating access to the U.S. market. Through its Trade Promotion Centers (ITPC), the government is offering various support programs including international internships, buyer introduction programs, and direct mentoring for exporters who want to establish their own networks abroad. These initiatives are designed to help businesses build sustainable partnerships and expand independently.
At the same time, discussions are ongoing to further reduce tariffs to zero for selected Indonesian commodities. These include coffee, cocoa, and palm oil. The Indonesian government is optimistic that these goods meet the requirements for tariff elimination, given their strong export potential, limited production in the U.S., and consistent demand.
This development marks a new chapter for Indonesian coffee. With the right combination of quality, branding, and strategic market entry, local producers and exporters have a rare opportunity to grow and thrive on a global scale.
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