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Intermediate processed cocoa and chocolate industries in the world show increasing because the chocolate products consumption is growing at a very strong pace. Indonesia is a country with the potential to become the largest exporter of intermediate processed cocoa. The objectives of this research are: to analyze the ability of production of domestic cocoa beans to meet the demand for intermediate processed cocoa industry; to analyze the factors that influence the demand for cocoa beans to produce cocoa paste, cocoa butter and cocoa powder. This research uses simultaneous equation model with 2SLS method. This study states that the cocoa beans necessity required by industry of cocoa paste, cocoa butter and cocoa powder can be fulfilled by domestic production of cocoa beans. Cocoa beans demand for cocoa paste industry is influenced by wages, cocoa beans demand for cocoa butter and cocoa powder industries. Cocoa beans demand to produce cocoa butter is affected by world cocoa price, interest rate, cocoa beans demand for cocoa paste and cocoa powder industries.

THE ABILITY OF INDONESIA COCOA BEANS IN FULFILLING THE DOMESTIC NECESSITY OF INTERMEDIATE PROCESSED COCOA INDUSTRY