Data Analysis Methods Factors Influencing Indonesian Cocoa Export to the European Union
Table 6. Budget recapitulation of cocoa program for three years 2009 - 2011 No
Source Cost Milion
1 Central Government National Budget
2.521.634,7 2
Province Government Local Budget I 257.594,5
3 Regency Government Local Budget II
786.482,2 4
Banking plantation revitalization 6.716.289,3
5 Private quality standard socialization
2.500 6
Farmer labour 3.464.989,8
Total 13.749.490,5
Source: Portal Nasional Republik Indonesia, 2009
According to the General Directorate of Plantations 2009, locations of te program cover nine provinces in 40 districts, they are:
a. West Sulawesi in five districts: Mamasa, Polewali Mandar, Majene, Mamuju and North Mamuju.
b. South Sulawesi in 10 districts: Bantaeng, Bone, Soppeng, Wajo, SindenrengRappang, Pinrang, Enrekang, Luwu, North Luwu.
c. Southeast Sulawesi in five districts:Konawe, Kolaka North, South and MunaKonawe.
d. Central Sulawesi in eight districts: Donggala, Moutong, Parigi, Poso, Morowali, Banggai, ToliToli, Buol and Tojo Una-Una.
e. East Nusa Tenggara in Sikka and Ende, Tabanan and Jembrana. f. Maluku in the District of West Seram and Buru.
g. West Papua in Manokwari and Sorong. h. Yapen Islands of Papua in Sarmi, Keerom and Jayapura districts.
There are some activities which are conducted in this Production Improvement and Quality of National Cocoa Program. The main activities are
rejuvenating 70,000 ha plantations, rehabilitating 235.000 ha plantations, intensification which covered 145,000 ha areas, farmer training for 450,000
people to realize quality improvement. Supporting activities are training 360 people, constructing sub-station
research, building four units of experimental garden and strengthening seven units of field laboratories, manufacturing cocoa cultivation technology database
systems, rehabilitating 90 units of UPP, soil and leaf analysis for fertilizer recommendation, monitoring and evaluating are done by universities.
Cocoa production and quality improvement program involves various parties to exploit potential available resources. They include central government,
provinces, foreign countries, private companies, banks and farmers with the duties and responsibilities as follows:
1. Central government: providing financing for planting materials, fertilizers, rejuvenation, rehabilitation and intensification, labor assistance for farmers,
pest control tools and materials, professional assistants, farmer empowerment, development of sub-station study, strengthening and
developing labs and field application of quality or socialize the implementation of quality standards.
2. Provincial government: allocating budget to support program implementation and cocoa certification and providing land for sub-station
construction. 3. District Government: providing budget to support the program and selecting
farmer candidate and land candidate.
4. Banking: providing credit to finance revitalization of farm fertilizers, pesticides, agricultural tools and land certificate.
5. Private: providing financing for SNI Implementation. 6. Farmers: providing shade trees and labor.
The implementation of cocoa production and quality improvement program will provide these benefits:
1. Increasing cocoa productivity in program location. 2. Increasing cocoa production in program location.
3. Increasing farmer income in program location. 4. Increasing money supply in rural location.
5. Increasing foreign exchange earning in program location. 6. Increasing cocoa quality in accordance with SNI.
7. Fulfilling raw material needs of domestic industry. In April 2010 Indonesian government started to impose tax policy for
cocoa bean under decree No. 672010. The Finance Minister imposed a five percent tax on exported cocoa beans, and priced ranging from US 2000 - 2750
per ton. This tax rate is increased to 10 percent for beans sold for more than 2750.
This tax policy was aimed to push domestic cocoa downstream industry. Government considers that the cocoa tax policy will revive the cocoa industry. It
was made to encourage more production of cocoa beans in Indonesia, to improve the benefit from marketing value-added product for the country. It would benefit
not only the cocoa industry but also cocoa farmers, who currently have more options in selling their beans. Instead of being depended on exports; farmers have
the option to sell their beans to domestic processors. Government can also use the funds gathered from tax to help cocoa farmers, particularly to improve their
productivity as well as the quality of their products. On the other hand, there are some organizations or people who do not
agree with this policy. They believe the tax would lead to decreased competitiveness of the nation’s cocoa export, compared to the competitors such as
Ivory Coast and Ghana. They argue that domestic processors were able to get more than enough cocoa beans already. The domestic industry will not suffer from
the lack of raw materials if an export is not imposed.