Beans to Borders:
Expanding Coffee Trade from Indonesia to the World

Coffee Trade Indonesia

The coffee sector in Indonesia has expanded beyond just cultivation and roasting. The country is now growing into a thriving export business. With its rich production, strategic geographical landscape, and a reputation for world-class coffee beans, Indonesia is a key player in the global coffee trade. As demand for both green beans and processed coffee continues to rise, the trade sector has emerged as the most accessible entry point for foreign investors.

While the market in Indonesia has become increasingly open to foreign participation, the coffee trade remains tightly regulated. A straightforward business, such as buying and selling coffee, relies on proper licensing, ownership, taxation, and compliance.

Putranto Alliance assists foreign investors in structuring compliant coffee trading operations, ensuring complete company incorporation to product licensing in full compliance with trade regulations in Indonesia.

Legal Framework and Investment Structure

The following business activities are fully open to 100% foreign ownership when structured as a Foreign Investment Limited Liability Company (Perseroan Terbatas Penanaman Modal Asing/PT PMA):

  1. KBLI 46314: Wholesale of Coffee, Tea, and Cocoa
  2. KBLI 47243: Trading of Coffee, Granulated Sugar, and Brown Sugar
  3. KBLI 46900: Wholesale of Various Kinds of Goods
  4. KBLI 47991: Mobile Retail Trade of Food Commodities from Agricultural Products
  5. KBLI 62012: Internet Trading Application Development Activities (E-Commerce)

While Indonesia has opened up its trade sector to foreign investment, the key to fully participating lies in accurate licensing and business classification. The correct classification ensures that foreign investors can access all opportunities available within the coffee trading market.

Further regulations for foreign investment in coffee trading are contained in:

Business Models within the Coffee Trading Sector

The possible business models for this sector are as follows:

  1. Wholesale and Export of Green Beans
    Involves direct procurement from local cooperatives or farmers, storage, grading, packaging, and export. Exporters must register through the INATRADE system under the Ministry of Trade to obtain the necessary export permits for coffee commodities.
    A Certificate of Origin/CoO (Surat Keterangan Asal/SKA) and other supporting documents are also required to confirm product traceability and compliance with trade supervision.
    In addition, exporters must comply with customs declarations and export reporting obligations to the Directorate General of Customs and Excise. Accurate reporting and documentation remain part of mandatory trade compliance to prevent shipment delays or audit risks.
  2. Trading of Processed Coffee Products
    Covers roasted, ground, instant, or ready-to-drink (RTD) coffee.
    For business that involves re-packing or labeling, compliance with the Indonesian Food and Drug Authority (Badan Pengawas Obat dan Makanan/BPOM), Indonesian National Standards (SNI), and halal certification becomes mandatory.
  3. Digital and Cross-Border Coffee Trade
    Conducted through e-commerce or digital marketplace platforms registered under the Trading Through Electronic Systems (Perdagangan Melalui Sistem Elektronik/PMSE) regulations.
    This larger scale of trading business model requires electronic business registration and adherence to data, tax, and consumer protection regulations.

Practical Challenges for Investors

While trading may seem simple, there are administrative challenges that require timely counsel. The common issues are as follows:

  1. Incorrect KBLI selection leads to license rejection or OSS reclassification.
  2. Incomplete export documentation may delay shipments or trigger customs audits.
  3. Unclear supply or sales contracts can expose foreign traders to disputes on quality, delivery, or payment terms.
  4. Improper IP or brand ownership weakens control over distribution and resale abroad.
  5. Non-compliance in reporting (investment report, tax, and social security) may suspend the business license.

How Putranto Alliance Supports the Coffee Investors

Professional advice is critical in aligning operational intent with regulatory boundaries. Our well-guided investment team will assist your coffee trading business with:

  1. Determining the correct KBLI classification for each trading activity.
  2. Drafting purchase, supply, and export contracts with clear delivery, arbitration, and IP clauses.
  3. Ensuring compliance with BPOM, halal, and SNI for processed coffee distribution.
  4. Overseeing updates, tax compliance filings, and tax registrations as the business scales.

Trade with Confidence in the Coffee Market

Coffee trading remains one of Indonesia’s most open and promising sectors for foreign investment.
However, greater market access comes with complex regulatory requirements. Success in trading business depends on strong licensing, proper documentation, and disciplined company governance throughout the supply chain. Gaps in documentation, mismatched data, or unregistered products can slow your shipments, trigger audits, or even suspend export rights.

Do not let administrative issues block your market access before your coffee even leaves the port.

Putranto Alliance assists foreign traders throughout the trading operation to move as smoothly as your product flows. Through clear legal structure and disciplined compliance, Putranto Alliance supports sustainable participation in Indonesia’s coffee trade economy.

In coffee trade, success is no longer defined by access to beans, but by access to compliance.

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