USAID Sustainable Environmental Governance Across Regions (SEGAR) project has joined forces with Pipiltin Cocoa, an Indonesian chocolate company, to establish a sustainable cocoa supply chain in Mahakam Ulu District (Mahulu), East Kalimantan Province. On May 24, 2023, the two entities officially signed a memorandum of understanding at the Main Meeting Room of the Mahakam Ulu District Planning, Development, Research, and Development Agency (Bappelitbangda) Office.

Indonesia, with its tropical climate and equatorial location, stands as one of the world's major cocoa-producing nations. In Mahulu, cocoa has long been a prominent commodity. However, challenges persist within the supply chain, such as traditional cultivation practices and the need for improved quality control systems.

Cocoa possesses significant market potential both domestically and internationally. Mahulu District data reveals an annual cocoa production capacity of 250 to 300 tons of dry cocoa beans, with two harvests per year, while market demand continues to rise. Over the years, the cocoa plantation area in Mahulu District has expanded from 854 hectares in 2015 to approximately 1,499 hectares in 2020.

Pipiltin Cocoa recognizes the immense possibilities offered by Mahakam Ulu as a cocoa-producing region. Dinda Fryda Auralya, Marketing Executive of Pipiltin Cocoa, expressed, "Pipiltin Cocoa sources raw materials directly from our local farmer partners, whom we support and value. We hope that this collaboration with USAID SEGAR can empower farmers in Mahulu to produce high-quality cocoa beans."

Brian Dusza, Director of the USAID Indonesia Environmental Office, emphasized the growing cocoa market and the accompanying demand for a responsible supply chain, addressing environmental, social, and governance aspects. USAID is dedicated to supporting communities and working alongside partners, including companies, to develop sustainable businesses that prioritize social welfare and environmental protection.

The partnership between USAID SEGAR and Pipiltin Cocoa aims to enhance farmers' capabilities by promoting the adoption of good agricultural practices (GAP) and establishing a sustainable business model that integrates key stakeholders within Mahulu's cocoa value chain, connecting them with existing markets. This endeavor aligns with the Mahulu District Government's vision to establish the region as a prominent cocoa production center.

During the memorandum of understanding signing ceremony, Mahakam Ulu Vice Regent (Wakil Bupati) Drs. Yohanes Avun, M.Si, attended on behalf of the Mahakam Ulu Regent (Bupati), expressing support and highlighting the potential of cocoa in the Mahakam Ulu District. Yohanes emphasized, "This MOU can serve as a pivotal axis to maximize the potential of cocoa in Mahulu, ultimately benefiting cocoa farmers."

Following the signing, the teams from USAID Indonesia, USAID SEGAR, and Pipiltin Cocoa visited a cocoa plantation in Laham Village and met with the Kedawin Permai Farmer Group. The cocoa farmers showcased their cultivation and post-harvest processing techniques, including plant care and cocoa bean drying. Pipiltin Cocoa will further evaluate cocoa samples from Laham Village to conduct quality testing.