Indonesia eyes global cocoa market dominance with new trade deals

Indonesia possesses a significant opportunity to bolster its standing as a major player in the global cocoa and chocolate industry, driven by robust export performance and the allure of premium markets. The government is actively fostering market access through a network of international trade agreements, viewing these as crucial for enhancing the competitiveness of Indonesian cocoa products on the world stage.

Trade Minister Budi Santoso highlighted the government's commitment to opening new markets via trade pacts. Currently, Indonesia has enacted 25 trade agreements, with an additional two awaiting ratification and eleven more under negotiation. These agreements are designed to dismantle both tariff and non-tariff obstacles, thereby streamlining the entry of Indonesian goods into global commerce.

Santoso pointed to the U.S. as a key market where chocolate products stand to gain greater access through ongoing trade negotiations. The U.S. represents a substantial trading partner for Indonesia, accounting for approximately 11 percent of its total exports, valued at $30.9 billion. Simultaneously, substantial opportunities are emerging within the European Union market.

Indonesia and the EU have finalized the core aspects of their Comprehensive Economic Partnership Agreement (IEU-CEPA), with a target signing date in September 2026. Santoso expressed optimism that this agreement, along with others, will significantly improve market access and boost the competitiveness of Indonesian cocoa products. Notably, products within HS code 18, encompassing semi-finished to finished cocoa goods, are projected to achieve increasingly competitive tariffs, aiming for zero percent by 2031.