Palembang – The South Sumatra Chamber of Commerce and Industry (Kadin Sumsel) and the Pagaralam City Government signed a memorandum of understanding (MoU) aimed at developing a more modern and export-oriented coffee trading system.

The MoU signing took place during a forum titled “Synergy of the Pagaralam Coffee Trade Ecosystem Towards the Global Market,” held at Hotel Swarna Dwipa in Palembang, South Sumatra, on Thursday (30/04/2026).

Chairperson of Kadin South Sumatra, Affandi Udji, emphasized that the partnership is not merely ceremonial, but marks the beginning of a major transformation in the region’s coffee trading system.

Affandi noted that Indonesia is the world’s fourth-largest coffee producer, according to the 2025 report by the Foreign Agricultural Service of the United States Department of Agriculture (USDA), with South Sumatra serving as a backbone of the country’s robusta coffee production.

“Today, we are not merely signing a memorandum of understanding, but laying the foundation for change. We are moving away from the old system, where farmers were often under price pressure, toward a new system that provides quality standards and market certainty,” Affandi explained.

According to Affandi, Kadin acts as an ecosystem driver that connects farmers, financing access, and markets within one integrated value chain. Through this partnership, several strategic programs will be implemented, including the adoption of a warehouse receipt system, product quality enhancement, and expanded access to export markets.

“Our target is clear — Pagaralam coffee must move up to the next level. Farmers must prosper, and the region must gain tangible added value,” Affandi stated.

He also expressed optimism that synergy between the government and business sector would accelerate the realization of a modern and sustainable coffee trading system.

“If we move forward together, we are not only selling coffee, but also building a better future for farmers and the region,” Affandi added.

Meanwhile, Mayor of Pagaralam Ludi Oliansyah welcomed the partnership. He stated that Pagaralam coffee, particularly the Raden Kuning variety, has demonstrated outstanding quality and has started penetrating export markets.

“Alhamdulillah. This is a momentum to strengthen the branding of Pagaralam coffee,” said Ludi.

He affirmed that the Pagaralam City Government is ready to collaborate with various stakeholders to strengthen the position of the region’s coffee within the global trade chain.

“We are ready to collaborate. This is a major opportunity that must be utilized together,” he concluded.