Bogor, Indonesia – 10 April 2025. For generations, Indonesian coffee farmers have depended on their trees as the main source of income. Coffee brings heritage and pride, but it also comes with risk. Prices often swing with global markets, trees take years to mature, and most smallholders farm less than one hectare. For families relying on small plots, this makes income unstable and the future uncertain.

To respond to this challenge, KAPPI Global launched a research initiative to explore how farmers could earn more from the same land. The research was led by Prof. Dr. Muhamad Syukur of IPB University, a leading agricultural scientist. His team studied whether coffee plots could also host another crop that complements coffee and boosts income.

The findings were surprising: chili. A crop rarely linked to coffee turned out to be a perfect partner.

Making the most of small land

Trials in West Java, Central Java, and Lampung tested chili varieties under coffee trees of different ages. The results were clear. Two varieties, Bonita IPB and ORI 212, thrived under coffee canopies.

In older coffee plots, chili yields reached about 12 tons per hectare, which is almost 50% higher than Indonesia’s national average of 8 tons. Even in younger plantations, productivity stayed above the national benchmark.

The shade also helped with pest control. Whitefly attacks, which usually spread viruses in chili, were reduced by about 20% compared to open fields, cutting crop losses and lowering pesticide costs.

For farmers, the message was simple: the same land could now give two strong harvests instead of one.

Turning fresh harvests into steady income

High yields mean little if prices collapse. In Indonesia, chili prices can swing by more than 100% in one season, leaving farmers with huge risks.

The project introduced a way out: processing chili into chili paste. With a shelf life of four weeks without preservatives, the paste held its flavor and nutrition while freeing farmers from the pressure of quick sales.

By combining intercropping and chili paste production, farmers increased their incomes by about 30%. In Lampung, for example, farmer groups saw earnings rise from around IDR 28 million to 36 million per hectare per cycle. The ability to manage sales across both fresh and processed products gave them stability they had never enjoyed before.

Building farmer skills and confidence

The program emphasized knowledge sharing to make sure the method could spread easily. Farmers were trained in nursery preparation, transplanting, mulching, and pest control. In several areas, drip irrigation was installed, improving water efficiency by about 35% and reducing manual labor by nearly half.

Training also extended to chili paste production. Farmers learned how to process 5–10 kilograms of chili per day, creating a product they could sell collectively. The training gave them not just new skills but also confidence to innovate.

Benefits for farmer groups and local businesses

Beyond single farms, intercropping creates opportunities for groups and communities. With collective processing, farmer groups can handle up to 200 kilograms of chili paste each week, supplying local markets and small businesses. Coffee cooperatives, which once depended only on global coffee prices, now have a second, more predictable income stream.

Looking forward, the project aims to reach 1,000 farmers by 2025. At that scale, productivity could rise by about 20%, and rural incomes could grow by more than IDR 8 billion each year, based on current projections.

Farming smarter for the future

This innovation is not only about boosting income—it also makes farming more sustainable. By intercropping, shaded land beneath coffee trees is used efficiently, without clearing new farmland. Diversifying crops increases biodiversity and reduces risks from pests and diseases.

Shade-tolerant chili varieties showed survival rates of over 90% under coffee canopies, proving they can handle the challenges of changing weather. For farmers, this means stronger harvests and more resilience to climate uncertainty.

The road ahead

To scale the system further, challenges must be addressed. Some farmers are still unfamiliar with chili cultivation, requiring ongoing training. Affordable processing equipment is limited, especially in remote areas. Market integration is also essential—farmers need reliable buyers for chili paste to make it a long-term solution.

A planned feasibility study for farmer-led chili paste enterprises will explore packaging, branding, and supply chains. The goal is to connect local producers with broader markets, turning chili paste into a recognized rural enterprise with national potential.

From research to real impact

The story of coffee–chili intercropping shows how research can transform livelihoods. With support from KAPPI Global and leadership from IPB University, farmers are now achieving 50% higher yields, 20% fewer pests, 35% better water efficiency, and 30% more income.

What began as small trials is shaping into a broader movement. A movement where coffee farms are not only about beans for export, but also about innovation, income diversity, and stronger communities.

KAPPI Global is proud to share this journey—where science and tradition come together to create better opportunities for Indonesian farmers.

References

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