Indonesia's Coffee Exports Jump as Growers Release Stockpiles

By Yoga Rusmana

Oct. 23 (Bloomberg) -- Coffee-bean exports from Indonesia's main growing regions climbed in September as farmers sold the commodity to buy food and clothes for the Muslim festival.

Shipments from Lampung, Bengkulu and South Sumatra increased by 34 percent to 45,760 metric tons from 34,062 tons in August, data from the Association of Indonesian Coffee Exporters showed today. The sales value increased to $85.7 million from $69.7 million.

The main provinces of Indonesia, Asia's second-largest coffee-growing nation, account for 80 percent of production and overseas sales. The price in London of robusta, the bitter- tasting variety grown in the country, has dropped 37 percent from a peak of $2,815 on March 6, as the financial crisis increased concern that global demand would slow.

``Most of the shipments were for sales made in July and August when prices were still high,'' Suherman Harsono, head of the Lampung chapter of the association, said by telephone. ``Farmers were also selling their stockpiles to raise cash before Ramadan and Eid al-Fitr.'' Indonesia, the world's most populous Muslim nation, celebrated the Eid al-Fitr festival early this month. That marks the end of the holy fasting month of Ramadan, in which people usually increase spending on food and clothing. Exports in the first nine months doubled to 237,972 tons from 117,887 tons in the year ago period. The value gained to $465.5 million from $193.1 million.

To contact the reporters on this story: Yoga Rusmana in Jakarta at yrusmana@bloomberg.net