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The Election of Indonesia as Chair of the International Coffee Organization Board

Currently, global coffee prices are under US $ 2 per kilogram (kg) amid a surplus in global coffee supply.

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Illustration of Indonesian Coffee Pictures by andreaswegelin / Pixabay

JAKARTA – Indonesia is believed to be the leader of the International Coffee Organization (ICO Council).

This was proven by the election of the Director General of International Trade Negotiations at the Ministry of Trade Iman Pambagyo as Chair of the ICO Council for the period 2019 – 2020. Faith replaced Stephanie Kung from Switzerland.

The election of Faith as Chair of the ICO was conducted at the 125th annual meeting of the ICO Council on September 23-28, 2019 in London, England. The Chair of the ICO Board will be in charge of leading the continuation of the discussion of various important decisions produced by the ICO Board and working with the Executive Director of the ICO to implement the decision by mobilizing various resources.

“Indonesia’s leadership in the ICO Council is important and reflects the world’s trust in Indonesia to encourage the economic sustainability of the coffee sector through partnerships between the government, farmers and the industrial sector,” Faith said in an official statement received by Bisnis, Monday (09/30/2019) .

He continued this effort in line with the statement of Vice President Jusuf Kalla at the UN forum in New York on September 25, 2019. At that time, JK highlighted the decline in world coffee bean prices and the need for breakthrough measures to save the industry and agricultural commodities.

The Minister of Trade Enggartiasto Lukita stated that the appointment of Faith as Chair of the ICO Board was an acknowledgment of Indonesia’s role and contribution to the organization.

“In addition, this is a reflection of the members’ trust in Indonesia to head the ICO to face various challenges, particularly related to the economic sustainability of the coffee sector as a result of the global coffee price crisis,” he explained.

The 125th meeting of the ICO Council was held amid growing concern about the decline in world coffee prices by 30 percent in the last 2 years. The condition is considered to require collaborative efforts among ICO members to overcome them.

At present, global coffee prices are under US $ 2 per kilogram (kg). During this time, the excess supply of global coffee is suspected to be the main trigger of continued depressed world coffee prices.

Although there has been an increase in global coffee consumption by 2.2 percent in recent years, the growth rate is still far below the increase in global coffee production. Thus, the level of consumption has not been able to absorb the existing supply.

To increase global coffee prices, in 2017, ICO members have agreed Resolution No. 645 to encourage the level of world coffee consumption in order to balance the level of supply with the level of world coffee demand, which in turn is expected to stabilize prices.

Source : ekonomi.bisnis.com

Yustinus Andri DP

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