The Indonesian Ministry of Industry is enhancing the export market for coconuts through a strategic downstreaming program. Alongside palm oil, coffee, and cocoa, coconut is a key commodity for Indonesia. In 2022, Indonesia produced 17,190,327 tons of coconuts, accounting for 27% of global production. In 2023, exports of coconuts and their derivatives reached USD 1.5 billion. Coconut (Cocos nucifera) is highly versatile, with nearly every part of the tree being useful for building materials, food, and cosmetics. Indonesian coconuts are processed into products like cooking oil, coconut milk, copra, and coconut sugar, serving as essential raw materials in various industries. The Ministry of Agriculture, through the Agricultural Quarantine Agency, highlights that at least 13 types of coconut derivative products are popular internationally, reaching countries across six continents, including Asia, Europe, Australia, Africa, North America, and South America. Indonesia, the world's largest coconut producer, exports nearly all parts of the coconut, including meat, water, shells, fiber, and trunks. Key coconut production areas over the past five years include Riau, North Sulawesi, East Java, North Maluku, and Central Sulawesi. Riau leads with 395.5 tons (11.92%), followed by North Sulawesi with 271.1 tons (9.33%), East Java with 257.5 tons (9.17%), North Maluku with 240.8 tons (7.95%), and Central Sulawesi with 229.4 tons (6.77%). Other provinces, including Lombok, contribute the remaining 54.86%. Putu Juli Ardika, Director General of Agro Industry, highlights Lombok's abundant coconut potential.
The Ministry, along with stakeholders, is developing an integrated coconut downstreaming roadmap and business model to optimize this potential. The government has allocated IDR 16.8 billion in Special Allocation Funds (DAK) from 2022 to 2024 to support Lombok's coconut processing industry, which produces Virgin Coconut Oil (VCO), coconut oil, and coconut flour. Putu emphasizes the importance of sustainable coconut cultivation and balancing land use for other activities to ensure inclusive and sustainable economic benefits. Human resource development is also crucial, with training provided by the Industrial Human Resource Development Agency (BPSDMI). Despite successes in producing coconut oil, VCO, and coconut flour, there are still untapped downstream products. Currently, most coconut-based product processing occurs at the home industry level, producing items like coconut oil, VCO, and coconut fiber crafts.
