Indonesian farmers sitting around a cocoa plant

Scaling Responsible Digital Payments in the Indonesian Cocoa Sector

Unlocking Over $700 Million Payment Digitization Potential in Indonesia’s Cocoa Sector.

The cocoa sector faces challenges such as declining yields due to ageing trees and climate impacts. Due to a significant credit gap, smallholder farmers – most of whom are underbanked – are currently caught in a negative feedback loop of reduced income and falling profits.


The Government of Indonesia, with the Indonesian cocoa sector and 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.

Today, Indonesian cocoa farmers are paid almost exclusively in cash. Cocoa-buying companies have committed to increase efficiency, sustainability, and transparency in their sourcing, and major global players (such as– MarsModelez and Cargill have public targets for up to 100 percent of their supply to be certified sustainable by 2025. Digitizing payments offers end-to-end financial transparency by helping global cocoa processors to verify where their product is sourced.This study reveals that certified supply chains, which account for 40 percent of all production in Indonesia today, emerge as a potent tool in digitization efforts.

Key findings highlight that certified supply chains, responsible for 40 percent of Indonesia’s cocoa production, offer significant opportunities for digital payment systems, which in turn can improve financial transparency and efficiency. The potential for digital tools extends to crafting tailored financial products, particularly for women who are pivotal in both farming and household financial decisions. The full report details specific strategies and recommendations essential for realizing these goals.

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