This report presents a sector profile and value chain analysis of the coffee industry in East Nusa Tenggara, identifying the potential for improved smallholder coffee returns. The research shows that coffee in this region has considerable potential, not least because of its natural low acidity and high body flavour derived from its soil and climate.

Despite numerous initiatives to address Indonesia's inconsistent and poor cocoa quality, adoption of improved production and post-harvest practices has been limited. This study examines the influence of value chain governance and quality based incentives. The report includes a brief overview of the Indonesian cocoa value chain from producers to international trading and the enabling market.

This report identifies the constraints and growth opportunities for the Indonesian cocoa value chain and proposes potential solutions to these constraints for future investment in cocoa. A desktop analysis provided information on both the global and Indonesia cocoa value chain. Interviews with key value chain participants informed the rest of the analysis, while focus groups were held to validate initial findings. The authors propose three key areas to address growth constraints: increasing productivity, improving quality and increased investments for local value addition.