Indonesia's emergence from a shadow of its past as Dutch colony is slowing its growth as a coffee exporter – by fostering rapid growth in domestic consumption.

Indonesians have historically consumed poor quality beans, and even those have been mixed with corn, at a ratio of one part coffee to seven of the grain - a hangover from colonial times.

"During that era, most of Indonesia's coffee beans were exported, with only damaged and low quality beans remaining in Indonesia," a report from the US Department of Agriculture's Jakarta office said, saying the mixing in of corn was said to reduce stomach acidity.

"Indonesian coffee drinking habits resulted from of these low quality beans."

Chain reaction

However, higher incomes and the emergence of coffee bar chains – local brands as well as international names such as Starbucks - has fostered the adoption of more Western-style coffee drinking.

"Coffee franchises have become common in larger cities, contributing significantly toward higher coffee consumption in Indonesia," the briefing said.

Indonesians now consume, at an average of 0.85 kilogrammes per capita, 70% more coffee than they did 20 years ago.

Switch from cocoa

Such growth has kept Indonesia behind Colombia in fourth place among global exporters, despite the South American country's weather setbacks which badly dented production last year.

Indonesia's coffee output is expected to hit 9.6m bags in 2010-11, encouraged since last year by a tax on cocoa exports, a main alternative.

Arabica beans, of which Indonesia has historically grown less than robustas, are proving especially popular among growers, with output set to rise by 8.7%.

Exports will increase by 5.8% to 7.3m bags.