Chocolate is no longer judged by taste alone. Across Asia, consumers are paying closer attention to where cocoa comes from, how it is produced and whether local communities benefit along the way.
That shift is creating new opportunities for small producers to move beyond selling raw cocoa beans and instead build higher-value products. In North Kalimantan, Indonesia, one women-led enterprise is showing how premium chocolate can strengthen local livelihoods while protecting the environment that supports cacao farming.
A Village Protecting More Than Just Cacao
In Pejalin Village, Bulungan Regency, cacao has become much more than an agricultural crop. Through the women-led Kita Merong Joint Business Group (KUBE), locally grown cacao is transformed into premium chocolate under the Kayan Koa brand, allowing more value to remain within the community.
The initiative also addresses a growing environmental challenge. Oil palm plantations now cover around 5,000 hectares of land surrounding the village, while cacao occupies only about 1,000 hectares. For local residents, preserving cacao farms also helps protect water catchment areas and maintain healthier landscapes for future generations.
According to Mardiatin, better known as Ibu Yen, farmers previously sold cacao beans to outside buyers at low prices, leaving little incentive to continue growing the crop. Processing cacao within the village offered a way to improve incomes while giving farmers renewed confidence in their harvests.
Turning Local Harvests Into Premium Products
The journey began in late 2023 when Pejalin Village received support through Indonesia’s Ecological-Based District Budget Transfer (TAKE) programme. With assistance from the village government, KUBE received cacao processing equipment in 2024 and began learning every stage of chocolate production.
Today, the group processes around 300 kilograms of dried cacao beans every month, producing chocolate bars, cocoa powder, cocoa butter and ready-to-drink cocoa products. Five of the group’s nine members manage daily production, making Kayan Koa one of the few micro-enterprises in the region to control the entire production process from raw beans to finished chocolate.
By processing locally rather than selling raw commodities, the business captures significantly more value while creating employment opportunities within the village.
Quality Starts With Better Farming Practices
Producing premium chocolate requires more than quality equipment. It also depends on the consistency of the raw cacao itself.
One of the biggest challenges remains encouraging farmers to ferment their cacao beans before selling them. Fermentation improves flavour and quality but requires additional time, delaying income for farmers who often need immediate cash after harvest.
To address this, KUBE continues working with farmers to improve post-harvest practices while collaborating with Indonesia’s National Research and Innovation Agency (BRIN). Researchers from Universitas Kaltara (UNIKALTARA) are also supporting product innovation, including the development of white chocolate and cacao-husk tea to diversify future offerings.
A Restorative Economy That Benefits Everyone
Beyond chocolate production, Kayan Koa reflects the principles of a restorative economy by creating economic, environmental and social value at the same time.
The business purchases fermented cacao directly from local farmers at stable prices of IDR80,000 to IDR90,000 per kilogram, helping improve income certainty for growers. Monthly turnover has also increased significantly, from approximately IDR3 million to IDR5 million during its early operations to around IDR16 million today.
The initiative has also opened new employment opportunities for women and young people in Pejalin, particularly during periods of higher production, giving more residents a direct role in the village’s economic development.
Why This Matters for Southeast Asia
Demand for premium chocolate continues to grow across Southeast Asia, including Malaysia, where consumers increasingly value product quality, authenticity and responsible sourcing.
As brands place greater emphasis on provenance and sustainability, initiatives like Kayan Koa demonstrate how community-led businesses can compete by offering products rooted in local identity and environmental stewardship.
Rather than focusing solely on higher production volumes, the project highlights how preserving natural resources, supporting smallholder farmers and processing products locally can create stronger long-term value for rural communities.
Building Better Value From the Ground Up
For Mardiatin, the vision extends beyond growing sales. She hopes the production house will continue expanding while providing more training that allows local women to strengthen their skills and maintain consistent product quality.
Civil society organisation Pilar Nusantara Association (PINUS) has also helped bring greater visibility to Kayan Koa through digital platforms and national forums focused on ecological development. By showcasing projects like this, the organisation is helping demonstrate how community enterprise, environmental conservation and inclusive economic growth can work hand in hand.
As Southeast Asia’s premium food industry evolves, Pejalin offers an important reminder that the story behind a product can be just as valuable as the product itself.
Celebrating Sustainable Community Innovation
Across Asia, communities are finding innovative ways to create economic opportunities while protecting the environment and preserving local heritage. RiseAsia shares these inspiring stories that highlight how entrepreneurship, sustainability and community leadership are shaping a more resilient future for the region.
Discover more stories on innovation, rural development and sustainable business across Asia at RiseAsia.
FAQs
1. What is Kayan Koa?
Kayan Koa is a premium chocolate brand produced by the women-led Kita Merong Joint Business Group (KUBE) in Pejalin Village, North Kalimantan, Indonesia.
2. Why is cacao important in Pejalin Village?
Besides providing income for farmers, cacao cultivation helps protect local water sources and discourages land conversion to other agricultural uses.
3. What makes this initiative different?
The community processes cacao entirely within the village. From fermented beans to finished chocolate products in order to create higher local value while supporting farmers, women entrepreneurs and sustainable development.
