Home Blog Investing in Cocoa: Make Your Move in Indonesia Business Setup | Indonesia | Investor KITAS Investing in Cocoa: Make Your Move in Indonesia InCorp Editorial Team 22 May 2025 6 minutes reading time Table of Contents The Global Cocoa Deficit & Indonesia's Strategic Position Cocoa Production in Indonesia Is Cocoa a Good Investment in 2025 and Beyond? Opportunities for Foreign Investors to Invest in Indonesia's Cocoa Industry Step-by-Step Guide for Foreign Investors Entering Indonesia's Cocoa Sector Lead the Global Cocoa Market with InCorp Cocoa is more than just a treat, and it’s becoming a wise investment choice. Across the globe, many are turning their attention toward investing in cocoa as the market faces a growing supply shortage. At the same time, demand keeps rising, especially in emerging economies like China and India. Indonesia, the world’s third-largest cocoa producer, is stepping into the spotlight. With its perfect climate and the strategic government support that ensures a stable investment environment, Indonesia is well-positioned to meet global demand. This makes investing in Indonesia an exciting opportunity for those looking to tap into the future of cocoa. This article explores why Indonesia could soon lead the global cocoa market and how investors can benefit from this rising sector. The Global Cocoa Deficit & Indonesia’s Strategic Position As of the end of 2024, global cocoa prices have soared to unprecedented levels, driven by severe weather conditions and a tightening supply. The International Cocoa Organization (ICCO) reports that cocoa futures have surged to $11,441 per ton in London and $11,545 per ton in New York, marking a staggering 60% increase since October 2024. Extreme weather conditions, including severe drought and high temperatures in major cocoa-producing countries like Ivory Coast and Ghana, drive the sharp rise in future cocoa prices. These two nations supply nearly two-thirds of the world’s cocoa, and their ongoing climate challenges have triggered fears of continued harvest failures. Indonesia’s Strategic Role in the Global Cocoa Market While West Africa grapples with unstable production, Indonesia is emerging as a key player in the cocoa industry. Despite a recent decline in local cocoa bean production, Indonesia remains one of the largest exporters of processed cocoa products, such as cocoa butter, cocoa powder, and cocoa liquor. Despite the hurdles, the government’s renewed ambition to boost cocoa output, through replanting programs and stronger industry collaboration, positions Indonesia as a serious contender to help fill the global cocoa gap and strengthen its leadership in the international cocoa market. READ MORE:Step-by-Step Guide to Exporting Cocoa from IndonesiaGuide to Exporting Durian from IndonesiaThe Complex Strategy Behind Indonesian Rice Exports Cocoa Production in Indonesia This table reveals the industrial strength of Indonesia’s cocoa sector. The country ranks among the top global cocoa processors, just behind the Netherlands and Ivory Coast. Products processed in Indonesia are exported to over 90 countries, generating more than $1 billion in revenue. Is Cocoa a Good Investment in 2025 and Beyond? The global cocoa market is at a critical turning point. As supply continues to fall short of rising demand, cocoa stands out as one of the most promising investment opportunities for 2025 and the years ahead. Indonesia’s processing capabilities, geographic advantages, and government-backed investment climate make it a strategic choice for those seeking to capitalize on the cocoa boom. Whether through direct cocoa investments, supporting upstream production, or engaging in commodity trading, cocoa offers a sweet spot for investors ready to act on global market trends. Opportunities for Foreign Investors to Invest in Indonesia’s Cocoa Industry Foreign investors can explore several profitable avenues to enter Indonesia’s cocoa market. Here are the key opportunities: Cocoa Processing and Grinding Facilities Investing directly in cocoa grinding and processing plants offers immediate access to the value-added cocoa market. With the rising global demand for processed cocoa products like butter, powder, and liquor, Indonesia has a solid industrial base to meet this need. Plantation Rejuvenation Projects A large portion of Indonesia’s cocoa plantations consists of aging trees over 20 years old, leading to reduced yields. Supporting plantation rejuvenation initiatives by financing replanting programs or introducing high-quality seedlings allows investors to secure future supply chains and create sustainable sourcing solutions. Bean-to-Bar and Artisan Chocolate Production The premium chocolate segment, including artisan and bean-to-bar producers, is growing rapidly. There is a high demand for specialty, traceable, and sustainably sourced chocolate products across Asia, Europe, and North America. Investing in this niche allows foreign investors to tap into the fast-growing premium chocolate market. Export-Oriented Cocoa Processing Ventures Indonesia already exports processed cocoa products to over 90 countries. Establishing or investing in export-focused cocoa processing companies positions investors to capitalize on Indonesia’s trade networks and logistical advantages in shipping to key global markets. Sustainable Cocoa and ESG Projects There is a rising global demand for sustainable and ethical cocoa production, including projects that support fair trade certification, traceability, carbon footprint reduction, and farmer welfare programs. Foreign investors with expertise in sustainability can partner with Indonesian stakeholders to develop these initiatives. Step-by-Step Guide for Foreign Investors Entering Indonesia’s Cocoa Sector A well-planned and structured entry strategy ensures success for foreign investors interested in Indonesia’s cocoa industry. Below is a simplified guide that outlines the essential steps from market research to full operational setup. Research the Market Understand Demand and Competition: Identify key players, market gaps, and growth areas in local and export markets. Secure Reliable Cocoa Bean Sourcing: Focus on top-producing regions like Sulawesi, Sumatra, and Papua. Estimate Investment and ROI: Calculate startup costs, processing margins, and long-term profitability. Choose the Right Business Model Joint Venture: Partner with a local company for easier market entry and supply chain access. Wholly Foreign-Owned Company (PT PMA): Maintains complete control, though with higher capital requirements. Acquire an Existing Facility: Speed up market entry by purchasing an operational cocoa processing plant. Public-Private Partnership (PPP): Leverage government-supported projects with incentives for large-scale investment. Guide to Doing Business in Jakarta Mailchimp Free eBook Indonesia Business Insight Notify Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Subscribe Lead the Global Cocoa Market with InCorp With global cocoa prices at record highs and supply deficits continuing to disrupt major producing countries, Indonesia is well-positioned to lead the industry. The country’s strong processing capabilities, strategic geographic location, and growing government support create the ideal long-term growth and investment environment. Successfully establishing your business in Indonesia’s cocoa market is essential, and InCorp (an Ascentium Company) can guide you through every step. Company Registration: Simplify your entry into the Indonesian market with expert business setup and compliance guidance. Investor KITAS: Secure your long-term stay and operate your investment legally with ease. Complete the form below to expand your cocoa business and seize market opportunities. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions Can a business visa be used as a work permit in Indonesia? No, a business visa can only be used for non-income-generating business purposes, such as attending business meetings, seminars, exhibitions, or training. To work in Indonesia, you must apply for a proper work permit and a limited (KITAS) or permanent (KITAP) stay permit. What are the requirements for an Investor KITAS/ITAS application in Indonesia? Foreign investors need to have a minimum of IDR 10 billion in authorized capital, IDR 10 billion in paid-up capital, and IDR 1 billion in personal shares for applying for Investor KITAS/ITAS in Indonesia. What responsibilities does a PMA company have in terms of non-tax compliance? In Indonesia, a PMA company is typically required to submit various reports to relevant authorities, such as: Annual financial report Investment realisation report Manpower and employee welfare report Expatriate utilisation report Company loan repot Foreign exchange and prudential principles report However, depending on the business activities and classification relevant authority may require additional reports from a PMA company. Can a foreigner form a CV? A foreigner is not allowed to form a CV in Indonesia Get in touch with us. 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