From Field to Future: Transforming Indonesia’s Cocoa Value Chain

The Institute for Development Impact (I4DI) is leading sustainable transformation in Indonesia’s cocoa value chain through innovative partnerships. In November 2024, I4DI’s DC-based team visited East and North Luwu , Indonesia, to evaluate the impact of the Advancing Cocoa Agroforestry Toward Income, Value, and Environmental Sustainability (ACTIVE) program. This strategic collaboration unites I4DI, USAID, and Mars to revolutionize cocoa farming practices across Indonesia.

Strengthening Local Cocoa Supply Networks in Indonesia

The program’s success extends beyond the farmers themselves to a robust network of stakeholders throughout the cocoa value chain. Among them is Rusman, a Mars cocoa collector who demonstrates the profound community connections that drive the industry. From his base near Bakka Village, Rusman serves approximately 600 farmers. He collects cocoa every 2-3 weeks in off-season, increasing to every 10 days during peak times. During harvest season, he connects with up to 100 farmers daily – and, remarkably, he knows the name of every single one.

Indonesia’s Growing Role in Global Cocoa Production

Indonesia’s cocoa landscape is a testament to the dedication of people like Rusman and the farmers he works with. In 2024, the country stands as the world’s sixth-largest producer of cocoa, and the scale of cocoa production in Indonesia is expanding. Global cocoa prices have surged to four times their ten-year average. This rise drives growing demand for sustainable farming solutions. However promising, this market dynamic brings its own set of challenges. Farmers face increasing operational costs, particularly in fertilizers and labor, which can impact profit margins despite elevated cocoa prices.

Driving the Future of a Sustainable Cocoa Value Chain

The ACTIVE program addresses these challenges by implementing adaptive strategies that balance market demands with sustainable practices, fostering long-term industry resilience. Through this comprehensive approach, ACTIVE is helping to reshape Indonesia’s cocoa sector. The program demonstrates how agricultural sustainability, economic viability, and community development can work in harmony to create lasting positive change. As I4DI continue this important work, our vision remains clear: to transform cocoa farming into a sustainable enterprise that strengthens both environmental stewardship and community prosperity.

For more information on I4DI’s work in Indonesia, visit our Indonesia page: https://i4di.org/indonesia/