Governments Role in Upgrading Cocoa Commodity in South Sulawesi
by Syaharuddin Idris
Cocoa productivity in Indonesia haven’t been said to reach the stable point. Some cacao producer’s region wasn’t capable to produce the good quality of cacao. Geographic factor is believed to affects the quality, thus, Indonesia tropical climate has degrading cacao quality in which compared with cacao from Africa. The lack of its quality has caused cacao and other products price in international market charged discount US$200/ton from market price. From that matter, the speakers consider it as a chance as it means the export market for Indonesia’s cacao still remain open while domestic market also hasn’t been worked. The location that produce big amount of cacao is in Sulawesi Island (70%), but unfortunately in this province there isn’t company that willing to be a big invest lead firm yet. In the farmers perspective, biggest adding value activities is limited to processed cacao, yet, it remains on in low scale number of producers. Industrial actors, whom have involved still homogenate, like farmers, collectors and exporters. Furthermore, the foreign trader are preferring exports in raw form, so the cacao hasn’t processed in modern way, as they never demand to do so. The cacao processing in South Sulawesi Province hasn’t developed rapidly in downstream industries, thus there is only two companies which running cacao industry. Therefore, the speakers proposed some solutions to urge cacao exports in reasonable price and maximizing domestic processing. For these purposes, the role of lead firm becomes important to add the bigger value for Indonesia’s businessman/ trader and strengthen the networking to designate the brand Indonesia’s cacao.