Exploring the cocoa market in Indonesia: Export and import insights

Did you know Indonesia plays a sweet role in the global cocoa market? In 2023 alone, Indonesia exported US$100 million worth of chocolate and imported US$114 million worth of the same product, positioning the country as the 37th largest exporter and the 58th largest importer globally¹. This impressive scale highlights the vast global opportunities available in the cocoa market for Indonesian businesses.

Whether you're interested in cocoa exports or want to understand the dynamics of imported chocolate, this article will guide you through Indonesia's chocolate commodity trade and its global potential.

Indonesia's cocoa and chocolate trade landscape

Indonesia is a significant player in the global cocoa market, engaging in both substantial cocoa exports and imports. Historically known for raw cocoa bean production, recent data indicate a notable shift toward value-added products, with Indonesia primarily exporting chocolate preparations rather than solely raw cocoa. This demonstrates a growing capacity for processing and manufacturing finished or semi-finished chocolate commodity goods.

Indonesia's top export markets for chocolate preparations include regional neighbors like the Philippines (US$38.1 million), Thailand (US$12.4 million), India (US$10.1 million), Malaysia (US$9.56 million), and Canada (US$4.49 million).

Conversely, Indonesia’s chocolate imports are largely sourced from Malaysia (US$28.8 million), India (US$15.7 million), China (US$11.2 million), the United States (US$8.55 million), and Singapore (US$8.21 million).

Opportunities in exporting Indonesian cocoa products

The global cocoa market is experiencing significant growth, driven by increasing demand for chocolate products among consumers worldwide. Meanwhile, a key selling point for Indonesian cocoa exports is the inherent quality of its beans, which are known for their unique flavor profiles and suitability for various applications.

Beyond simply exporting raw cocoa, there are numerous opportunities to add value by processing these beans into specialty finished goods, such as fine chocolates, cocoa powder, or cocoa butter. This transformation not only increases profitability but also allows Indonesian producers to tap into niche markets.

Furthermore, there's a rapidly increasing consumer interest in sustainably sourced cocoa and chocolate products. Businesses that can demonstrate ethical and environmentally friendly practices in their supply chain will find a strong competitive advantage, meeting the evolving preferences of the discerning global consumer.

Navigating challenges in cocoa and chocolate export

While opportunities abound, exporting cocoa and chocolate commodity products from Indonesia also presents significant challenges. For instance, one of the key challenges in this industry is maintaining consistent quality standards and rigorous quality control throughout the supply chain, particularly for sensitive chocolate products. Additionally, Indonesian cocoa exports face stiff competition from other major cocoa exporting countries like Ivory Coast, Ecuador, Ghana, and Nigeria².

Furthermore, navigating trade barriers in destination markets, such as tariffs and non-tariff barriers, can be a complex process. After all, top chocolate-importing countries, such as Malaysia, the United States, Canada, and Turkey, each have their own regulations.

Fortunately, Indonesia has successfully negotiated a trade deal with the United States, reducing the proposed tariff on some products from 32% to 19%³. Beyond regulations, sustainability concerns within the cocoa supply chain and evolving consumer expectations for ethically sourced products also demand careful attention from Indonesian exporters.

Essential tips for exporting cocoa and chocolate

Successfully exporting your chocolate commodity or cocoa products requires more than just a great product. It also demands strategic planning and meticulous execution across several key areas, including securing the certifications, conducting market research, and streamlining the export procedures.

Ensuring product readiness and compliance

For your cocoa exports to succeed in international markets, you must ensure their readiness and full compliance with the regulations of the destination country. This involves rigorously meeting quality standards and obtaining necessary certifications.

For instance, Halal certification is often crucial for Muslim-majority markets, ensuring products adhere to Islamic dietary laws. Similarly, if you aim to tap into the growing organic market, obtaining organic certification will be crucial.

Beyond certifications, the importance of proper packaging for perishable chocolate commodity items cannot be overstated. Sensitive products, such as chocolate, require specialized packaging to preserve their quality, prevent spoilage, and maintain their integrity during transit, ensuring they arrive in perfect condition when delivered overseas.

Market research and entry strategies

Thorough market research is also one of the foundations of successful cocoa and chocolate export. It helps identify the most promising export destinations and understand their specific import regulations.

When conducting your research, consider these steps:

• Identify Promising Markets: Research countries with high demand for your specific type of chocolate or cocoa product. At the same time, look beyond traditional markets to emerging economies where chocolate consumption is on the rise.
• Understand Import Regulations: Each country will have unique import regulations for food products, including tariffs, quotas, and non-tariff barriers. Remember, meticulous research here prevents costly delays and rejections.
• Analyze Consumer Preferences: Especially for finished goods, understanding local consumer preferences—from flavor profiles and packaging aesthetics to brand perception—is crucial for tailoring your product to achieve market acceptance.
• Assess Competition: Evaluate the competitive landscape in your target markets to identify your unique selling proposition and positioning.

Streamlining export procedures

Efficiently managing your export chocolate documentation and procedures is vital for smooth and timely overseas delivery.

If you want to streamline the export process for your cocoa and chocolate goods, consider these tips:

• Master Essential Documents: Ensure you have all mandatory export documents meticulously prepared. For food products like chocolate commodity items, these typically include:
  • Commercial Invoice: Details the goods, their value, and terms of sale.
  • Packing List: Provides specifics on package contents, weight, and dimensions.
  • Bill of Lading (for sea freight) or Air Waybill (AWB) (for air freight): Serves as a contract of carriage and receipt of goods.
  • Certificate of Origin (COO): Verifies the country of origin of the product, which is crucial for customs and preferential tariffs.
  • Pemberitahuan Ekspor Barang (PEB): Your customs export declaration for final approval.
• Understand HS Codes: Accurately classify your chocolate commodity or cocoa products using the Harmonized System (HS) codes. Correct classification is crucial for determining the applicable customs duty and preventing misdeclarations.
• Utilize Digital Platforms: Leverage digital platforms for submitting export declarations and other required information where available, which can expedite the process and reduce errors.
• Maintain Records: Keep organized records of all export documentation and communications for future reference, audits, or repeat shipments. This way, you’ll have the documents you need to support traceability and compliance for your international logistics services.

Import regulations for chocolate in Indonesia

Importing chocolate into Indonesia is subject to specific regulations, particularly for food and beverage products. For instance, all processed food and beverage items, including chocolate commodity preparations, generally require registration with BPOM (Badan Pengawas Obat dan Makanan), Indonesia's National Agency for Drug and Food Control.

Furthermore, under Government Regulation 39 of 2021 (GR 39/2021), all products, including chocolate commodity items, imported, distributed, or sold in Indonesia are now required to be Halal certified, unless they are clearly designated as non-Halal products⁴.

Shipments are also subject to various customs duties and taxes, which vary depending on the product's classification. The correct HS codes play a crucial role here, as they determine the applicable import duty and tax rates, ensuring smooth customs clearance for your import chocolate and cocoa products.

Make cocoa and chocolate shipments convenient with DHL Express

The cocoa and chocolate trade offers immense potential for businesses in Indonesia. While understanding complex market dynamics, intricate import regulations, and adopting best practices for both finished goods and raw chocolate commodity shipments are crucial, these complexities don't have to hinder your growth.

DHL Express can step in as your reliable partner, providing comprehensive international logistics services to bridge these gaps. We offer proven expertise in navigating complex customs clearance processes for both cocoa exports and imports, ensuring smooth transitions across borders.

For sensitive products like finished chocolate, we provide specialized handling, including temperature-controlled options, safeguarding quality during delivery overseas. When you choose us, you can benefit from reliable shipment tracking and expert advice on proper packaging for shipping different chocolate commodity types.

Open a DHL Express business account today to streamline your international logistics for cocoa and chocolate products and effortlessly deliver overseas.