Japanese Confectionery Specialist to Strengthen Chocolate Supply Chain in Indonesia

March 2024

Chateraise, a Japanese confectionery company, just announced plans to aid local cacao production and strengthen the chocolate supply chain. This initiative aims to enhance production and sales in Indonesia, capitalizing on the expanding middle class’s appetite for cakes and pastries.

In Sulawesi, a significant cocoa-producing region, Chateraise will send Japanese experts to work with cocoa farmers to enhance cocoa bean fermentation and drying methods. Despite being the world’s third-largest cocoa bean producer, Indonesia’s reputation for quality lags behind that of major producers in West Africa. Indonesia’s cocoa bean production reached 667,300 tons in 2022.

The company aims to raise farmer incomes and generate employment opportunities through its efforts. Chateraise receives support from the Japan International Cooperation Agency, a government aid organization, and Yamanashi Chuo Bank, a lender based in Kofu. Once a dependable supply chain is established, Chateraise will procure cocoa from farmers and process it into cocoa mass at its factory in Bogor, a city south of Jakarta.

The cocoa mass, alternatively referred to as single-ingredient chocolate or chocolate liquor, will serve as the main ingredient for chocolate products. Chateraise, presently procuring approximately 70 tons of cocoa mass annually from Belgium, targets locally manufacturing 100 tons per year within three years.

To expand its local production, Chateraise is constructing a second factory in Bekasi, situated to the east of Jakarta, on a 2-hectare plot. This facility, set for completion in 2026, will be nine times larger than the Bogor plant, matching the flagship factory in Kofu. This expansion aims to drive down costs and prices, with the company targeting a total of 450 shops by fiscal 2025 and projecting sales of USD 204 million.

(Source: Nikkei Asia)

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