Lombok's cacao journey toward downstreaming

 Across tropical countries, cacao is more than a crop—it is a lifeline.

Millions of smallholder families depend on it, while the global chocolate industry thrives on their harvests.

Yet the sweetness of chocolate masks a bitter truth: producing regions often stop at the raw material stage, leaving the largest profits to be captured in processing and marketing.

This imbalance is starkly visible in West Nusa Tenggara (NTB). On the hillsides of Rempek Village, Gangga Sub-district, North Lombok, thousands of cacao seedlings were planted in February 2026.

NTB Governor Lalu Muhamad Iqbal personally planted 2,000 trees, signaling a new direction for village development focused on downstream processing and sustainability.

His message was clear: superior commodities must not be treated merely as raw materials.

Data from the NTB Agriculture and Plantation Office shows that 60 percent of the province’s cacao plantations are located in North Lombok.

Production reached 1,669 tons of dry beans per hectare, cultivated by about 4,600 families.

Prices even peaked at Rp140,000 (US$8.08) per kilogram in December 2024. But the volatility of global markets quickly eroded optimism.

In November 2025, the Ministry of Trade recorded a 14.53 percent drop in the reference price for cocoa beans to US$6,374.80 per metric ton, driven by surging supply from the Ivory Coast.

Export benchmarks were also corrected, underscoring the vulnerability of local farmers.

“When the world harvests, farmers in Gangga feel the impact,” one official remarked.

For NTB, relying solely on raw material production is no longer viable. The region must capture added value to protect livelihoods from global price swings.

Downstreaming Agenda

The provincial government’s downstreaming agenda reflects this urgency.

Commodities must not stop at the plantation level but be transformed into higher-value products.

Governor Iqbal pointed to coconuts, which can be processed into nata de coco, coconut butter, activated carbon, and even automotive components. The same logic applies to cacao.

North Lombok cacao offers unique genetic traits. The Ijo Kajuman variety is prized for its large fruit, productivity, and disease resistance.

Crossbreeding has produced the Beneng Jomot variety, notable for its deep red color and larger fruit. This innovation showcases the ingenuity of NTB farmers.

The Regional Research and Innovation Agency (BRIDA) plans to certify these varieties with the National Agency for Research and Innovation (BRIN) and the Ministry of Agriculture.

Legal protection is seen as a strategic step to prevent local varieties from being claimed elsewhere.

Yet downstreaming must go beyond certification. The 2018 Kampung Kakao program offers lessons.

The central government allocated Rp3.6 billion (US$207,000) to develop 200 hectares in Gangga, aiming to produce Lombok-branded chocolate.

But processing was planned outside the region, in Java, for efficiency. NTB was left with only primary margins, while the largest value chain remained elsewhere.

True downstreaming requires building local processing industries, even gradually, through cooperatives.

Financing and Standards

Access to financing is critical. The NTB Financial Services Authority (OJK) promotes closed-loop schemes and bank collaboration to protect farmers from predatory lenders.

Financial literacy programs strengthen farmer groups’ capacity. Without access to credit, building fermentation facilities or chocolate processing units remains difficult.

Quality standards are equally important. The premium chocolate market demands controlled fermentation, precise moisture levels, and traceability.

To enter the specialty segment, NTB must improve cultivation and post-harvest practices. Outreach, plant rejuvenation, and pest control form the foundation, though land rejuvenation remains a challenge in several centers.

Cocoa at a Crossroads

NTB cocoa stands at a crossroads. Land potential and varietal innovation offer hope, but global price volatility and limited local industry pose real challenges.

Solutions must be comprehensive. Village-based industry clusters, managed by cooperatives, can keep added value circulating locally.

Integration with tourism and the creative economy can also strengthen cacao’s role.

North Lombok, a gateway to marine tourism, can showcase local chocolate products tied to the stories of Ijo Kajuman and Beneng Jomot varieties. Chocolate becomes not just food, but a regional identity.

Applied research must be strengthened. Certification should be paired with taste testing and geographic branding.

Geographical indications can differentiate North Lombok cacao, just as Gayo coffee and Sulawesi chocolate have established reputations.

Stabilizing farmer incomes is equally important. Medium-term contracts between cooperatives and processors can mitigate global price risks, while agricultural insurance and crop diversification protect livelihoods.

Beyond Raw Commodities

Cacao is more than an export commodity—it is a tool for village empowerment.

With 4,600 families depending on it, every policy must safeguard their income sustainability.

Ultimately, cacao tells a story of courage: breaking free from dependence on raw commodity exports.

If NTB secures its varieties, strengthens financing, builds local processing, and integrates with tourism, cacao can become a symbol of economic independence.

Amidst the dynamics of the global market, the choice is clear. Will NTB continue selling beans, or will it sell the stories, flavors, and added value of its own land?

The answer will determine the future of cacao farming in the region.