Indonesia's Coffee Sector Embraces Green Economy Through ESGIN-AEKI Partnership

Indonesia is transforming its coffee industry towards sustainability to enhance export competitiveness and generate new income for farmers. Key initiatives include developing biochar, implementing carbon trading, and digitizing environmental governance, aiming to turn plantation waste into valuable economic assets.

The commitment was formalized through a memorandum of understanding between PT ESGIN Global Partners (ESGIN) and the Indonesian Coffee Exporters Association (AEKI). This collaboration focuses on biochar development, Digital Measurement, Reporting, and Verification (Digital MRV) systems, certification, and the commercialization of carbon credits to foster a green economy in national coffee-growing centers.

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Green economic development requires collaboration between government, businesses, associations, investors, academics, and the public.

Tanggamus Regency in Lampung was chosen as the initial location due to its significant coffee production. In 2025, the region produced 39,165 tons of coffee from approximately 41,526 hectares, managed by about 40,084 farming families. Ulu Belu sub-district is the largest producer, yielding 12,067 tons from 10,720 hectares. The vast plantation area generates substantial biomass, including coffee husks and pruning waste, which has largely gone underutilized.

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Green investment must yield tangible benefits for the community. Therefore, we not only build projects but also increase regional capacity, strengthen farmer welfare, create green jobs, and assist local governments in formulating sustainable green economic development directions. Tanggamus has great potential to become a national model for coffee-based green economic development.

This biomass holds potential for conversion into biochar, a soil enhancer that also sequesters carbon long-term. The scheme aims to prevent plantation waste from becoming an environmental burden, instead positioning it as a source of added value through carbon credit trading and promoting more sustainable coffee cultivation practices.

Brandon Keam, CEO of ESGIN, emphasized that green economic development requires collaboration among government, businesses, associations, investors, academics, and the public. He stated that green investments must yield tangible community benefits, focusing on regional capacity building, farmer welfare, green job creation, and supporting local governments in charting sustainable green economic development. Keam sees Tanggamus as a potential national model for coffee-based green economic development, with ESGIN acting as a partner in developing green economic roadmaps and AI- and blockchain-based Digital MRV technologies.

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ESGIN not only acts as an investor in green projects but also as a partner for local governments in developing green economic roadmaps, developing AI and blockchain-based Digital MRV technologies, and encouraging low-carbon investment into the region.