Terms of Reference for the Discussion on

"Improving the Quality of Indonesian Coffee based on

Cultural Heritage, Environment and Tourism”
Yogyakarta, October 2, 2023

A. BACKGROUND

In order to increase the promotion of Nusantara coffee abroad, the Nusantara Coffee Community (NCC) in

collaboration with the Yogyakarta Municipality (Pemerintah Kotamadya Yogyakarta), the Gadjah Mada

University (UGM) and related institutions and agencies intend to hold discussion activities with regulators,

business people and academics.

The ”Anjangsana Kopi Nusantara” (Nusantara Coffee Discussion) is an informal meeting space for the

world's coffee-producing countries in a relaxed format and series of events but still prioritizing various topics

and across scientific disciplines.

It is hoped that this side-event will present several representatives of friendly world coffee-producing
countries: Brazil, Ethiopia and Vietnam as the main participants, and 'coffee consuming' countries as other
participants, such as the European Union, Germany, the Netherlands and Italy. Through the medium of
'chatting and drinking coffee together' it is hoped that everyone can find various solutions in coping the
challenges and opportunities of coffee production.

Considering that one of the export destinations is to Europe, comprehensive outreach and discussions are
needed between NCC in collaboration with the Ministry of Foreign Affairs of the Republic of Indonesia
(Kemlu) and foreign representatives in Indonesia which have potential and collaboration with coffee
entrepreneurs, educational and cultural institutions.

B. OBJECTIVES

1. Increasing the participation of Indonesian coffee entrepreneurs in Europe in order to anticipate the
increasing demand for Indonesian coffee in Europe.

2. Enhancing the understanding of European countries' policies related to European regulations as well as
barriers related to the environment that have an impact on Indonesia.

3. Provides a positive picture of Nusantara coffee which has a single origin, geographical indication and is in
accordance with the principles of the UN Sustainable Development Goals (UN Development Goals).
 4. To foster enthusiasm among Indonesian coffee entrepreneurs, especially NCC, about the opportunity to
enter the European market and other regions which have a strong attraction for Indonesian entrepreneurs
and farmers.

II. Data related to Indonesian coffee exports.

1. Indonesian coffee is one of the most popular plantation export commodities in the world. Indonesian
coffee exports to foreign countries in 2022 reached US$ 1.15 billion. From the production side, according
to the Statistics Indonesia 2023 report from the Central Bureau of Statistics (BPS), Indonesia's coffee
production will reach 794.8 thousand tons in 2022, an increase of around 1.1% compared to the previous
year (year-on-year/yoy).

2. Indonesian coffee export destination countries

Based on data from the 2023 Central Statistics Agency

III. Some basic info for selecting themes related to the discussion

1. Cultural Heritage

- Coffee is a reflection of the rich culture, local wisdom, and skills of coffee farmers and processors.
Coffee has been an integral part of Indonesian culture for centuries. The islands in Indonesia also
provide their own nuances and uniqueness in coffee culture.

- Each island has unique traditions and customs regarding coffee consumption. For example, in Aceh,
coffee is often served with special spices such as cinnamon and cloves. In Java, the tradition of
 drinking coffee with a dipper (filter coffee) is still being preserved. Meanwhile, in Sulawesi, the
famous Toraja coffee is served in traditional ceremonies in a special way.

- Apart from enjoying the extraordinary taste of coffee, Indonesian coffee also has significant social and
economic benefits. The coffee industry is a source of livelihood for millions of farmers and workers in
various regions. In short, through coffee cultivation, they are able to create jobs, increase income and
support the sustainability of the local economy. By appreciating and supporting Indonesian coffee, we
are participating in maintaining and developing this cultural heritage.

- The discussion will also explain the important values ​ ​ contained in the Kotabaru Cultural Heritage
Area in Yogyakarta which can be a source of inspiration and motivation for the community to continue
to progress and develop. These values ​ ​ need to be preserved and disseminated to the community.

2. Environment

- Coffee plants are proven to be effective in preventing erosion. It has a layered stem crown, and
protects the soil from direct raindrops. The coffee tree can also tie up the soil because it has a half
meter thick taproot that goes up to 3 meters and lateral roots up to 2 meters long.

- Coffee agroforestry was chosen as an environmental conservation effort because it provides economic
and environmental benefits. Communities can receive additional income by cultivating the coffee
cherries without having to cut down the trees, thereby helping to maintain carbon stocks and
groundwater in the landscape. This is proven by plantation data in various regions in Indonesia.

- It is heartfelt to note that the Special Region of Yogyakarta (DIY) prepares superior coffee seeds. In
response to this, there is strong encouragement from coffee players to collaborate with tourism and
associations. Yogyakarta must be able to spare its potential. Among other things, tourist areas, student
cities and the need for an increasingly strong environmental insight.

- The Ministry of Agriculture on September 24 2022 donated 50,000 stems of coffee plants to 20
farmer groups in Kapanewon Cangkringan, Turi and Pakem, Sleman Regency. The Governor of DIY
hopes that the grant will encourage farmers to increase the productivity.

3. Coffee Tourism

i. The 267th Anniversary of the City of Yogyakarta this year will be held for six days from 1-6 October
2023, and the Yogyakarta Provincial Government (DIY) has targeted up to one million tourists.

ii. Not only promoting local tourism actors, this birthday celebration also invites foreign YouTubers to
promote tourism. Yogyakarta is one of the favorite tourist destinations, both for domestic and foreign
tourists.

iii. Several Yogyakarta tourist spots that are right to visit during long holidays are found in this student
city, ranging from instagramable spots to culinary hunting spots.

iv. Besides that, there are also many tourism potentials in the province of Central Java, such as in
Banaran, Central Java. This place is one of the tourist sites that improve tourist location facilities.
Tourist sites offer the beauty of the hills of coffee plantations.
C. Output

1. Understand European government policy rules and practices. Apart from that, Indonesian coffee
entrepreneurs can listen to success stories that will be conveyed by government agencies and
Indonesian entrepreneurs who are giving presentations.

2. Encouraging diaspora networks as end-users or sales agents for various roasted coffee beans.

3. Through discussions followed by further discussions, the Nusantara Coffee Community can discuss
technically matters relating to demand (needs), supply (offers), production, sales through existing
online marketplaces (Amazon, EBay, and/or Alibaba) as well as direct selling distribution directly
from the KKN production point.

4. Coffee activists, cultural heritage and ecosystems are expected to play a role and are important assets
for the progress of the Indonesian nation. Various activities including activities in the economic sector
have helped boost the development of Indonesian coffee exports.

5. Through coffee tourism, foreign participants can see firsthand a positive picture of Indonesian coffee
which is unique and internationally recognized.

D. Programes

1. Sunday, 1 October 2023 j

Jam 19:00: Opening and Gala Dinner on Malioboro Coffee Night 2023 at Restaurant Menara Kopi
Malioboro, Jl. Abu Bakar Ali No.1, Kotabaru, Yogyakarta 55213.

2. Monday, 2 October 2023

(Morning): Coffee tourism to Banaran, Central of Java,

(Afternoon): Tour around Kotabaru as a cultural heritage site.

(Evening) : Discussion on "Improving the Quality of Indonesian Coffee based on Ecosystems,

Cultural Heritage and Archipelago Tourism" at the Faculty of Social and Political Sciences Plaza,
Gajah Mada University.

3. 2 – 5 Oktober 2026: A series of showcase events, exhibitions and sales of Indonesian coffee
 E. Speakers and participants

1. The organizer of the Webinar is the Nusantara Coffee Community, in collaboration with the Yogyakarta

Municipality, and Gadjah Mada University.

4. The speakers for the discussion are:

i. H.E. Lambert Grijns, Ambassador of the Netherlands
ii. H.E. Ina lepel, Ambassador of Federal Republic of Germany
iii. H.E. Benedetto Latteri, Ambassador of Italy
iv. H.E. Prof. Fekadu Beyene Aleka,Ambassador of Ethiopia
v. H.E. Ta Van Thong, Ambassador of Vietnam
vi. (Acting Ambassador of the European Union)

4. Indonesian speakers:

1. H.E. Mr. R. Widya Sadnovic, Dirsctor for Europe 1, Ministry of Foreign Affairs.

2. H.E. Mr. Winardi Lucky Hanafi, Director for Europe 2, Ministry of Foreign Affairs.

b. H.E. Mr. Prayono Atiyanto, Coffee activist, the Indonesian Coffee Diplomacy.

c. Mdme Dr. Laretna T. Adhisakti, Lecturer at the UGM Faculty of Architectural Engineering/Head
of the Center of Heritage Conservation.

d. H.E. Mr. Bagas Hapsoro, Coffee activist, the Indonesian Coffee Diplomacy.

e. Mr. Dwi Sutoro

Ketua PMO Kopi Nusantara
Director for Marketing PTPN Holding

f. Mr. Rahmat Pribadi

Direktur Utama Pupuk Indonesia

f. (Dinas Pertanian dan Perkebunan Pemda DIY)

g. (Dinas Pariwisata dan Ekonomi Kreatif Pemkot Yogyakarta)

 h. Invitees:

Kementerian/instansi/terkait:

1. Kementerian Perdagangan
2. Kementerian Pertanian
3. Kementerian Perindustrian
4. Kementerian BUMN
5. Kementerian Koperasi dan UMKM
6. Kementerian Kominfo

i. Perangkat daerah:
1. Pejabat Walikota Pemkot Yogyakarta.
2. Kepala Dinas Perdagangan Pemda DIY
3. Kepala Dinas Pariwisata Pemda DIY

G. Activities supporting elements

Yogyakarta, 9 September 2023

Nusantara Coffee Community

(Imam Wisnu Birowo)

Chairman