October 7, 2025 | 06:18 pm
TEMPO.CO, Jakarta - The Japan International Cooperation Agency (JICA) has signed a $75 million loan agreement with ECOM Agroindustrial Corp Limited and its subsidiary, ECOM Agroindustrial Asia Pte Limited. This collaboration marks JICA's first exclusive working capital loan for the private sector.
The loan, also financed by the Asian Development Bank (ADB), aims to support 60,000 small-scale coffee farmers in Indonesia, India, Papua New Guinea, and Vietnam. The project includes support for purchasing funds for small-scale coffee farmers, providing consultation for coffee certification, piloting climate change adaptation projects, and supporting female farmers.
"[This project] will strengthen the coffee supply chain and help address critical challenges such as poverty among rural farmers, gender inequality, climate vulnerability, and the need for sustainable economic opportunities in the region," said Director General of JICA's Private Sector Partnership and Finance Department Takehiro Yasui in a statement quoted on Tuesday, October 7, 2025.
JICA notes that Indonesia's agricultural sector contributes approximately 13.3% of the total Gross Domestic Product (GDP) and employs about 30% of the total workforce. Indonesia is the world's third-largest producer of coffee beans, producing 12 million bags annually.
Meanwhile, Statistics Indonesia (BPS) recorded a 76.33% surge in Indonesia's coffee commodity exports in 2024 compared to 2023. BPS's Director of Distribution Statistics Sarpono said the 2024 coffee exports were valued at $1.6 million, surpassing the 2023 exports valued at $929,000.
"There seems to be a surplus as the export value is higher than the import value," said Sarpono in Jakarta on Wednesday, May 28, 2025, as quoted from Antara.
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