September 12, 2025 | The Star |
Indonesia’s coconut sector is facing tension as rising fresh coconut exports, particularly to China, absorb much of the national supply, leaving local processors short of raw material. According to the Indonesian Coconut Processing Industry Association (Hipki), fresh coconut exports in July reached US$52 million, nearly 150% higher year-on-year. Processed products also grew, with desiccated coconut exports up 85% to US$32 million and coconut milk up 50% to nearly US$36 million. However, coconut water concentrate exports fell 32% due to lack of supply.
Hipki deputy chairman Amrizal Idroes warned that processors are under severe pressure, with only integrated firms that can utilize every part of the nut—oil, milk, carbon, and water—able to survive. Single-product processors, especially in desiccated coconut, risk shutdowns. To rebalance the market, Hipki has proposed a levy on fresh coconut exports, though the government is still weighing the impact on farm-gate prices.
Officials, including Trade Minister Budi Santoso and Coordinating Food Minister Zulkifli Hasan, emphasized that exports will not be halted, as farmers are benefiting from high prices. Instead, the government urges replanting and efficiency improvements. With ageing trees and raw shortages, sustainability is a growing challenge for Indonesia, the world’s second-largest coconut producer.
