Other Publication

Cacao Seed Sources in Indonesia: Budwood Garden

Cacao Seed Sources in Indonesia: Budwood Garden

The data of budwood gardens in Indonesia which is issued by the Directorate of Seed Propagation, Directorate General of Estate Crops, Ministry of Agriculture Republic of Indonesia, in 2017.

Cacao Seed Sources in Indonesia: Seed Garden

Cacao Seed Sources in Indonesia: Seed Garden

Decree of the Curriculum Compilation Team and Training Module for Sustainable Cultivation and Post-Harvest Cocoa

Decree of the Curriculum Compilation Team and Training Module for Sustainable Cultivation and Post-Harvest Cocoa

Process for Producing Certified Planting Material

Process for Producing Certified Planting Material

Collateral in Cocoa Farmer Financing

Collateral in Cocoa Farmer Financing

To mitigate risk while lending, financial institutions often request hard collateral. Some light will be shed on the background and implications of collateral, especially in regard to the formal financial sector and the cocoa sector in Indonesia.

Financing farmers seems to be a challenging endeavor, since agricultural lending comes with its own risk characteristics. Broader risks can be weather events, changing weather patterns, pests and diseases, time gaps between income and living expenditure, transport risks to get the produce to the markets, etc. More particular risks for banks can be linked to the clients or to the banks behavior or knowledge. Lack of records at both farm and household level, lack of knowledge regarding formal financial services and often lack of collateral are external factors. Whereas lack of knowledge and understanding of a particular agricultural sector and the farmer’s financial situation are gaps a bank can address internally. In addition to that, there might be better business opportunities for banks, so agriculture loans don’t rank very high on their agenda. Although social considerations might play a role when financing farmers, the most important result for a bank is to get its disbursed money back, if possible with interest or profit share, thus a commercially attractive product.

Loans in arrears lead to the need of building higher loan loss provisions and later to write offs. The act of building the loan loss provision decreases the profits or increases the losses, while the write off itself is cost neutral if sufficient loan loss provision was built. In reality financial institutions avoid that sometimes by overstating the value of hard collateral or rescheduling loans.

Presentation of the People's Business Credit Program

Presentation of the People's Business Credit Program

Success Story



In late June Cokelat visited Tapporang village in Pinrang region to see a group of women who took the initiative to promote business in fermentation. What have they really accomplished? Here is the coverage.

As we all know, fermentation activities to improve the quality of cocoa beans have not been carried out by most Indonesian farmers. But a group of women in the region of Pinrang, apparently well aware that these activities could potentially increase their income.

A group called Jaya Mandiri started to engage in fermentation since the first quarter of 2013. Jaya Mandiri actual purpose was to create an activity that attracted the attention of many female farmers. Before this, they had been conducting a process turning water hyacinth into compost for cocoa plant. It was a success. Then they thought, what other activities could be beneficial for them. “After studying here and there, we decided to do the fermentation,” said Rosmini Mansur who appointed as the chairperson.

A Ton in Two Months

Jaya Mandiri itself is a combination of four groups of women in the area around Tapporang. The merger was intended to achieve more and more result of fermentation that can be sold to the buyer. But why choose fermentation? Women in Tapporang apparently was pleased with activities that require patience without having to sacrifice a lot of time. “Men are less painstaking, they have many excuses when asked to manage the fermentation,” said Rosmini, laughing.

In Jaya Mandiri office there are six large boxes for fermentation. Bukit Tinggi group, other group under the guidance of Jaya Mandiri, has planned to make 10 boxes, while the group at Sejahtera village already has six boxes.

These fermentation boxes are made by each group consisting of 25 people. To make one fermentation box can cost Rp. 500.000,- mainly to buy nails, worker consumption, and other materials that cannot be provided by the members. Due to high cost of manufacture, the wood should be taken from member donations. Box-making process is usually done by the women, “But when it comes to use the chain saw, we submit it to the men,” said Rosmini smiling. Rosmini says that wood is still the most expensive raw material in making the boxes. Lowest quality alone can cost Rp. 35.000,- per sheet, while the good one can be up to Rp. 50.000,- per sheet. ”So we were grateful with the donations, the production costs can be reduced,” said Rosmini. When asked whether the quality and type of wood affects the fermentation Rosmini replied, “Not really. But low quality wood tends to brake easily.”

Since April 2013, fermentation products processed by these women have been sent four times to an international buyer who has made a selling contract with the group. Meanwhile the fermentation standard and quality is determined by this buyer which also acts as a supply chain manager. At first, the group managed to sell as many as 284,5 kg of fermented cocoa bean, after which they sell on average about 200 kg. “So we’ve sold almost a ton within two months,” said Rosmini proudly.

Maintain Certification

According to Rosmini, fermentation activity is actually one of the ways to maintain certification they have run for four years, as well as to increase price of cocoa beans they sell. “The price of cocoa beans in this region is still lower than Polewali Mandar,” told Rosmini. Therefore Rosmini and friends wished for further guidance, not only in fermentation, but other activities that may improve the quality and quantity of their cocoa beans.

Various training and demo plot given by the AMARTA program were quite helpful in increasing the production and productivity in Pinrang, although Rosmini as a chairperson of the group claimed that she still does not understand very well about traceability. Tapporang women also do not want to do things by the book, they expect more practices on the field. “We do not want theories,” said Rosmini representing her friends.

At the end of conversation Rosmini says that she and her fellow farmers will not give up until they produce high precious cocoa beans. They reflect on the experience of Colonel Sanders, founder of Kentucky Fried Chicken (KFC),who had tried more than 730 frying techniques, before he finally got one which later became his signature. “By trying a variety of ways, KFC is now everywhere. We believe, that starting with fermentation, cocoa beans from Pinrang can also be sold anywhere,” said Rosmini.



Cocoa cultivation in Wolosoko village, Wolowaru sub-district, Ende District, NTT have been done since 1996, which in that period was as village program and was implemented by 300 households in that area.

"Farmers in this area have started grow cocoa since 1996 that covers 300 ha of land. But since the spread of CPB (Cocoa Pod Borer) many farmers stop growing cocoa. In 2007, with the introduction of new technology, farmers started to grow cocoa again,” explained Gregorius Boha, chairman of KSU Petani Kakao Lestari (Pasti), who is also called as “Om Rius”.

Om Rius explained further that they have experience extreme climate change that has affected their crops. Currently effectively only 8 months in a year they can grow cocoa and have production. “We have to find alternative sources of income by having cattle and planting other crops,” said Om Rius who owned 1,8 ha of land.

However, that condition does not dampen the spirit of KSU Pasti to continuously improve their cocoa productivity. Om Rius also added that beside the climate, limited stock and expensive price of fertilizer is also major problem that they face. Om Rius currently managing the Cocoa Development Center (CDC) house because of his determination in tending his garden and his eagerness to learn about cocoa, PT MARS have acknowledged him with Cocoa Doctor title.

CDC is open and not only attracting farmers but also tourists who want to learn how cocoa grow and produce good quality beans.

One thing that he look forward from his meeting with Cokelat editors is that the socialization of cocoa and its prospects in the global industry can be continuously done in Ende especially to government, which he consider has not yet aware of cocoa potential as profitable commodity. “One of KSU tasks now is to increase government interest to cocoa and to help them to make programs that is based on farmers needs and local culture,” said Om Rius, closing our interview with him.



Numbers of Indonesian youth who choose to be farmers are not pleasing. Indonesian Farmers Association (IFA) noted, Indonesia has got crisis in numbers of farmers, especially the younger cocoa farmers. As they explained at IFA press conference by the end of last year, the farmers availability at agriculture spots are dominated by those who are more than 45 years old. This crisis of younger farmers happens in Cianjur, Central Java, West Nusa Tenggara and Sulawesi. It also happens in Indonesia cocoa sector.

At the crisis, there is no doubt for those who choose to be younger cocoa farmers deserve to be high appreciated. One of them is Fadli, an 18 years old who chooses to be a cocoa farmer. 

This first son of 5 siblings takes care a half ha of cocoa farm as his own. A small number of farm if we compare to other succeed farmers, but big enough for a young boy who is building his dreams. This farm is a family legacy that is planted with about 300 cocoa crops. Every day, the son of Jamal and Darmina looks after his own cocoa crops.

Firstly, the cocoa farm was a shared responsibility in the family where they had about 3 ha of cocoa farms. Ali (he is usually called) just helped his parents in looking after their farms, till at the point he decided to take care by himself the farm that was entrusted to him. The decision was taken a year ago, and since that time, he officially becomes an Indonesia cocoa farmer, a job that he is so proud of. “Lucky to be a cocoa farmer,” he admits.

In a year, his cocoa farm has been producing about 100 kg cocoa beans where its result could be used to buy things that he dreams of. “I always want to be independent, can buy myself hand phone. Not asking from my parents, Now I’m saving money for buying a motorbike,” he explained.

Except the economical stuff that he has got, he also likes the working hours that he can manage by himself. It does not mean that because it is his farm, so he might be lazy and having lots of free time, other than precisely high responsibility to himself so he works hard. Every day, except on Mondays and if he has a family gathering, he will be easily met at his farm rather than other places.

Ali wants to have bigger farm and of course with good quality production result. Therefore, he never stops to look for how to cultivate cocoa well. He, who is joining RA certification and PT. Mars Symbioscience development program, hopes to get more knowledge from training for cocoa farmers. Moreover, he expects succeed stories from other succeed farmers that can be shared and learnt, so that can be roles in cultivating cocoa in his farm.

He also hopes the younger generation can join to be Indonesia younger cocoa farmers “The more farmers are better, even it is difficult to invite others. But masannang mobali petani (happy to be a farmer). Hopefully many more is like myself,” he states. Cokelat hopes more Ali(s) in the future.



Akissi, the mother of five children, operates a phone services kiosk where she also sells juice. When first offered the scholarship, she expressed concern about its amount. “I considered it too little for my dreams. I wanted more money, but the focus group leader and field agent counseled me that I should do little by little until I increase my capital, then I’ll be able to expand.”

She began by adding eggs to her juice business, earning an additional CFA 300 (USD 0.70) per day. She saved this extra money until she could afford to buy higher quality juices. In three weeks, she earned CFA 13,000 (USD 29.80) and joined a community savings group where she deposits her profits in order to qualify for a loan.

“I want to start a bigger business selling fresh fish. It is something I tried before, but it requires a much bigger investment. Soon I will have my loan to buy a freezer to hold the fish,” Akissi explains.

“I considered it too little for my dreams. I wanted more money, but the focus group leader and field agent counseled me that I should do little by little until I increase my capital, then I’ll be able to expand.”

“All this to say that the money I considered too little in the beginning has helped me to realize my dreams. At home, the changes are visible; I have no problem taking care of the house expenses – same for the schooling of my children, including one who will start university this year. I was relaxed at the beginning of the school year.”

WCF ECHOES family support scholarships improve children’s access to education by increasing the income generating potential of their parents. Parent-child pairs receive a grant equivalent to three years of the child’s school-related expenses. One third of the scholarship funding is used to pay the current school year’s expenses. The remaining two-thirds are used to further develop a business that generates sufficient income to support the child’s continuing education. This scholarship component was initiated under the CLASSE Program in Côte d’Ivoire and is being expanded by the WCF ECHOES Alliance through Winrock International. 156 scholarships were awarded with over 93% of parents continuing to support their child’s education. Parent-child pairs receive a grant equivalent to three years of the child’s school-related expenses. One third of the scholarship funding is used to pay the current school year’s expenses. Parent-child pairs receive a grant equivalent to three years of the child’s school-related expenses. One third of the scholarship funding is used to pay the current school year’s expenses.




Living and growing up in the middle of the cocoa farmers family, making this man really falls in love with this commodities. Since he was a kid, he has been doing various his family cocoa plantation works. It’s all done not just to meet the needs of everyday life, but also because of his love with all the activities related to cocoa, which shaped him into a hard worker.

Asmawi, born in, Soppeng, South Sulawesi, has been introduced to hard work and conscientious. The cocoa plantations that attract his attention have also become one of the factors why Asmawi can be like these days. “Since I was a kid, I have liked and wanted to be a cocoa farmer. There is a satisfaction when cocoa plants produce a good product,” he explained in starting conversation with Cokelat  recently at his home in Takalala, Labessi village, Marioriwawo subdistrict, Soppeng Regency, South Sulawesi.

Although having busy time with his family-owned plantation, he was still taking higher education and got a degree in agriculture. It can be predicted, his research at the college was not far from not far cocoa; an analysis of the cocoa supply chain.

Trusted by Director General P2P

Spending almost the entire time struggling with the knowledge and activities in cocoa plantations makes him understand a good cocoa farming. Not only his plantation that can be proud of, but he is also trusted by the Directorate General of P2P to become farmers’ facilitator in the mentoring in Soppeng, especially for post-harvest processes.

In particular, he assists 15 farmer groups in the process of sorting, picking fruits and how to pack them, breaking the fruits, sorting beans, and fermentation until the beans marketing. One thing that draws his attention in particular is fermentation. This process that will be required of Government is still lacking done. In Soppeng, based on his opinion, fermentation is just carried out around ten percent. The number is quite small. In fact, if it is viewed from his experience during this time, Asmawi believes that fermentation is a simple enough process, but able to give big advantages to cocoa farmers. He further explains that fermentation can be done thoroughly by all farmers, because the technology is pretty easy to implement. Yet, fermentation takes up to about 7 days, where it means farmers will have to postpone its sale time. This became one of the constraints, where farmers want to get cash instantly and rapidly.

Another obstacle is the fermentation beans’ price which taken insignificantly difference by farmers the non fermentation beans. He observes, farmers tend to count on a small scale, where the difference of fermented beans is only about a thousand to two thousand rupiah each kilo with non-fermentation. But if it is calculated by the large scale, it’s worth quite significant. For a ton, it can be different one till two million for fermented beans. Additional values can be used for the needs of farmer plantations, for example for the improvement of the quality of the soil. Farmers can use his money completely out-side of it for other purposes, e.g. for children’s school fees.

This fermentation was done by almost all farmer groups that he mentored. That time, “Fermentation Movement” was running, where the farmers had even set up the fermentation equipment such as fermentation boxes by themselves, without any help from the Government. Unfortunately, there was a decrease in purchase price of fermented beans by traders and industry that made farmers discouraged to keep doing it.

Now, he and other mentors are struggling to restore and encourage a spirit of farmers for fermentation. “There is nothing difficult in fermentation. It just needs the accustoming ourselves because it is an additional value for the farmers themselves,” he added. With the life philosophy of willingness to help others and enjoy the process of explaining the new technology to others, Asmawi tries to be good cocoa activist, whether as an Indonesian cocoa farmers and mentor.

(COKELAT Magazine, Edition 03, December – February 2013)




KSU (Koperasi Serba Usaha ) Tekat is located in Rajawawo a small village 12 km from the capital of Nangapanda sub-district in Ende Disrict, East Nusa Tenggara (NTT) province. This area is one of the biggest cocoa production area in NTT.

The KSU offers services to other farmer like provide training, cocoa entries and seeds. Currently it has 172 members and in 2012 KSU Tekad was able to buy and sell 18 tonnes of dried and fermented cocoa beans, in accordance with SIN standard.

When met with Cokelat editors, Poly, the chairman of the KSU reveals that the cooperatives was formed as initiative of 3 neighboring villages in the sub-district. During the Musrenbang Desa (village planning meeting) the 158 farmers participated in the meeting agreed to form a legal body from their Gapoktan. Since, cocoa is the major commodity in that area, they agreed to form a cooperative for cocoa.

“Together with Bapetam, government and farmer groups, we were working on activities that can increase cocoa production, at least that can help us do better farming. At the end, after we met with Swisscontact, we received a lot of knowledge and skill that made us more confident to form this KSU,” said Poly.

Currently, KSU Tekat have been able to make achievement, because they have gain trust from farmers as well as government to give facilitation and training to farmers in Ende Districts and also neighboring districts.

“Once, we were assisted by MARS and we build communication with them. We get plenty of knowledge from MARS,” said Poly. He also add that when they started the activity in 2007-2008, they were a Gapoktan (collective farmer groups), and they focused on improving their farming practices. After the quality of their cocoa improved, they started to look for market for their cocoa. MARS gave them a break through by giving them trust to collect beans from the farmers and made their location as MARS buying point. Poly admit that MARS’s innovation have helped them in selling their production because in one harvest cycle the production in their areas can reached 20 tonnes.

From the experience working with MARS, they were convinced that they can make a KSU. “We have to move forward with the experience that we got so that we can help farmers market their cocoa. We can learn while we run the coop,” said Agus, one of the KSU manager. ”Everything is for KSU now, how to make it big and successful. We, the managers, don’t get paid. Everything that we earned from giving services to farmers or government we give back to KSU cash. We don’t mind, as long as this KSU can grow,” he added, followed with nods from his other colleagues.

“With 13 people as KSU managers, I believe that KSU Tekat will grow. At this moment we have served  279 farmer groups as our member after just two years of operation,” Poly explained further.

According to Poly, farmers in this area have felt the benefit where they have been able to increase the quality of the cocoa beans significantly that have give them better selling price. Moreover, trainings provided by KSU not only related to farming practices but also new technologies. “In 2012, almost all KSU members have received trainings and most recently we received training on fermentation from Comextra,” said Poly.

What have made them proud was because KSU have power to determined price which is higher than the price offered by local traders, moreover it is supported with good quality beans. “KSU price is higher than trader’s price because we know how to calculate the price and we sell directly to the exporters without middle-men. During harvest season, collectors flocked the village and we can compete with them. In fact, some of the collectors sold their beans to us. We can achieve this with the support from our partners like Swisscontact, MARS, etc,” said Poly.

They hope, in the future, CSP can help link them with buyers and provide them with information especially information on training and technologies in cocoa. “We really need exporters like Comextra and before that MARS to open buying station in Flores so that our cocoa price is not manipulated by local traders,” added Agus.

(COKELAT Magazine, Edition 04, March – May 2013)