As the world’s leading producer and exporter of palm oil, Indonesia also maintains a significant presence in the global coffee and cocoa markets. The country is now actively pursuing trade ambitions on the African continent.

North African countries could become new growth drivers for Indonesian agricultural exports. They would provide an alternative to the European Union (EU) market, according to Indonesian Deputy Foreign Affairs Minister Arif Havas Oegroseno.

In an interview with Bloomberg last week, the official stated that Indonesian authorities are actively seeking new outlets for their commodities. Like other partners exporting to the bloc, the Southeast Asian nation will be impacted by the EU Deforestation Regulation (EUDR), which is set to prohibit the import of products such as cocoa, coffee, soybeans, palm oil, timber, and beef originating from deforested land.

With the EUDR theoretically scheduled to take effect by the end of 2025, Oegroseno suggested that North Africa could absorb coffee and cocoa produced by smallholder farmers who lack the financial means to bear the costs of complying with the new EU rules. Egypt and Libya were cited as target countries.

“Complying with the EU means cost, and the cost of just being compliant is probably even more than the cost of trying to find new markets," Oegroseno added. "While they are incurring costs, the price is not guaranteed.”

While other details on the trade ambitions of the world’s largest palm oil exporter remain sparse, Indonesia produced 180,000 tonnes of cocoa in the 2023/2024 season, according to the International Cocoa Organization (ICCO). This volume makes it the top cocoa producer in the Asia & Oceania region and the 7th largest globally. Indonesia is also the world's 5th largest coffee producer and the 3rd leading supplier of robusta coffee, following Vietnam and Brazil.

Regarding market potential in North Africa, the region is home to four of the continent's six largest coffee consumers: Algeria, Egypt, Morocco, and Tunisia. The other two are Ethiopia (1st) and South Africa (5th), according to the International Coffee Organization (ICO).

For cocoa, TradeMap data shows that Egypt was the second-largest African importer of cocoa beans and preparations in 2024, with $210 million in imports, trailing only South Africa. Purchases were also significant in Morocco (approximately $165 million) and Tunisia ($43 million) during the same period.

Espoir Olodo