The Impact of Export Tax Policy on Cocoa Farmers and Supply Chain

Since April 2010, the government of Indonesia has imposed an export tax on cocoa beans that aims to increase the availability of the cocoa beans for domestic processing companies at an affordable price. The objective of this article is to analyze the effect of the export tax on farmers and the supply chain. This study was conducted by a survey in North Luwu, South Sulawesi, which is the central production area of cocoa beans in Indonesia. The results show that, after the export tax was imposed, farmers maintained the same marketing channel, but margins decreased on the exporters’ side.