Scaling Responsible Digital Payments in the Indonesian Cocoa Sector

Indonesia has the largest cocoa sector in Asia, and the sixth largest by volume globally. The sector has been a mainstay of the national economy for decades and currently contributes over $700 million per year to GDP. Approximately 32 percent of Indonesian cocoa farmers are women.

To support the development and sustainability goals of Alliance members, the Government of Indonesia, and the Indonesian cocoa sector, the Better Than Cash Alliance has conducted a first-of-its-kind sizing exercise to assess opportunities for digital financial inclusion for smallholder cocoa farmers.

This study reveals that certified supply chains, which account for roughly 40 percent of all production in Indonesia today, emerge as a potent tool in digitization efforts. For digital payments to be meaningful for farmers, the study finds that digitization needs to be strongly linked to access to a broader suite of financial services, to unlock farm investments and smooth day-to-day consumption. Overall, the study finds that there is ample opportunity for digitization of payments in the Indonesian cocoa sector.