Indonesia is the fourth largest coffee producer in the world after Brazil, Vietnam and Colombia. The ability of Indonesia as one of the largest coffee producer in the world is a long story since the days of the Dutch East Indies government since the early 1900s. At that time, the Dutch East Indies government made ​​coffee as one of the export commodity. produced by coffee plantations managed by the Dutch government and almost all of these are exported, except unsold coffee exported. This low-quality coffee sold to the domestic market. In line with the establishment of coffee plantations at that time, then mushroomed precisely ground coffee processing industry, although the majority of its business scale is still small and medium industries. The forerunner of today's biggest coffee producer, such as Ship Fire brand has stood at that time (1927).

Growth in production of processed coffee, especially coffee powder continues to climb. Production of coffee powder Indonesia in 2008 reached 129 659 tons. In the last five years (2004-2008), the growth of coffee production reached an average of 5.0 percent per year. As will be discussed in another chapter in the book of this study, which was almost entirely domestic production of ground coffee is consumed in the local market, meaning that the relatively flat growth is a reflection of the growth of local consumption of coffee powder that grows relatively gentle anyway. 

Later, various processed coffee differentiation developed in the country, but it seems there are only two types of market gets, the instant coffee (without pulp) and coffee mix. instant coffee appeared on the domestic market along with the establishment of PT Nestle Indonesia (1993), and then PT Sari Incofood Corporation (1984). In the last five years, the production of instant coffee ranges in 10.000an thousand tons per year with a growth trend in the period 2004-2008 is relatively slow, reaching 4.3 percent per year. Instant coffee production in Indonesia in 2008 reached 10,995 tons, and production in 2009 is expected not much different from the previous year, which is 11,000 tons. 

Overall, the total production of coffee powder and instant coffee in 2008 reached 140 654 tonnes, up an average of 4.8 percent per year since 2004, or during the last five years. In 2009, the two types of coffee production is estimated at 141,000 tons. These production estimates are based on the effect of economic growth stagnated in 2009 as a continuation of the impact of the global financial crisis in 2007-2008 before. 

The coffee market in the country today is not only enlivened by the coffee powder and instant coffee, but also by the presence of more and more coffee mix coffee fans have a place in the country. This coffee excellence lies not only in the design of the packaging is such that it is very practical consumed, because dikemasan in sachet packaging, but also creativity serving coffee producers in many variants, both in terms of the decafeinated or non decafeinated; or in terms of a diverse mix of flavors. The surge in production is inevitable, even in quantity equaling or never equaled the amount of ground coffee production itself, which is 102 053 tonnes in 2005 (Source: CBS). Indeed, the production still looks choppy, and in 2008 amounted to 87 505 tonnes. 

Somehow broke down the economy in the last five years due to various crises hit, no doubt influenced the development of coffee production this mix as well. For, as is known, that the proportion of coffee in the coffee mix is actually relatively small (between 5 to 13% by volume), meaning that the largest components such as milk, sugar and other mixtures such as chocolate, ginseng, creamer, ginger and others. Because generally, coffee mix is packaged in a sachet, packaging cost factors also affect the production of this COFFEE. 

In terms of manufacturers, PT Santos Jaya Abadi is still a leader in the coffee business in Indonesia, where in the last three years (2007- 2009) the company was controlled between 44% to 45% share of the coffee market in Indonesia. While PT Eka Semesta Torabika still stalking in second with priduksi share in the range of 17% to 22%, followed by PT Sari Incoffod Corporation on production share between 13% to 14% and PT Nestle Indonesia the share of production in the range of 5% to 6% . 

In terms of production per company was also able to describe the competitive landscape of coffee in Indonesia, which is still dominated by a handful of large companies only. Although, as has been mentioned earlier that the total coffee producers in Indonesia is more than 400 companies, which are certainly still actively producing as many as 205 companies, but the number of small businesses that are hundreds of having only a share of the production of not more than 8% only. That is, the competitive landscape is clearly smaller companies is hard to be able to compete fairly against a handful of large companies which are very aggressive in advertising their products, both in the media of television, radio and print media. 

Not surprisingly, in the year 2009 the rigors of competition in the coffee business in Indonesia lives of more than 110 pieces of domestic companies, small or medium that is no longer able to operate, in which 69 companies have ceased operations and 17 company actually stopped production permanent basis, as well as three companies abandon plans to produce coffee business.

In general area and coffee production in Indonesia for 10 years terahir (2002-2011) coffee crop area expansion was almost no meaning. In the period of TSB. acreage has decreased by 4.6%. Similarly, in the same period Indonesia's coffee production has stagnated, even in the year 2011 decreased significantly, due to the erratic weather conditions. Approximately 95% of production TSB. a folk coffee (coffee smallholders), while the rest is a big coffee plantations (coffee estates). 

Robusta coffee composition approximately 83% of the total Indonesian coffee production and the remaining 17% in the form of arabica coffee. Comparison of robusta with arabica coffee production is expected that the percentage may be increased, which is to be 30% Arabica coffee and Robusta 70%

Some of the names of Indonesia's coffee production which has been known abroad commercially is the Gayo Arabica coffee spesialti Coffee, Coffee Lintong, Mandheling Coffee, Java Coffee, Civet Coffee, Bali Kintamani Coffee, Toraja Coffee & Flores / Bajawa Coffee which has become a mainstay Icon of Indonesian Coffee and a very well known abroad, because it has a distinctive flavor characteristics and (spesialti).

Some Coffee Producing Regions 

A. Arabica (High levels Specialty Coffee World):