In 2023, Indonesia's coconut exports reached USD 1.5 billion, elevating Lombok as a hub for coconut downstreaming. To expand the export market for coconuts, the government has designated Lombok as the Center of Excellence for coconut downstreaming. Known for commodities like palm oil, coffee, and cocoa, Indonesia also holds a significant position in the global coconut market. In 2022, Indonesia produced 17,190,327 tons of coconuts, accounting for 27% of the world's production. The export value of coconut and its derivatives in 2023 amounted to USD 1.5 billion. The coconut tree (Cocos nucifera) is versatile for tropical communities, with nearly every part being utilizable, from building materials to cosmetics. In Indonesia, coconuts are processed into cooking oil, coconut milk, copra, and coconut sugar, serving as essential raw materials in the food, beverage, and cosmetic industries. The Indonesian Agricultural Quarantine Agency notes 13 varieties of coconut-derived commodities thriving in the global market, exported to numerous countries across six continents. Indonesia is the world's largest coconut producer, with major production centers in Riau, North Sulawesi, East Java, North Maluku, and Central Sulawesi.
The significant potential of coconuts, particularly in Lombok, has garnered government attention for further development. The Ministry of Industry, alongside stakeholders, is formulating an integrated roadmap for coconut downstreaming. The government has allocated Special Allocation Funds (DAK) of IDR 16.8 billion to North Lombok Regency to support the coconut processing industry from 2022 to 2024. Director General of Agro Industry Putu Juli Ardika mentioned that Lombok could serve as a model for effective coconut processing. He emphasized the importance of maintaining sustainable coconut cultivation areas while considering land needs for other activities. Additionally, the focus on human resources and the development of downstream coconut products aims to support inclusive and sustainable economic growth. Coconut industry players in Lombok have already been producing Virgin Coconut Oil (VCO), oil, and coconut flour. However, there remains potential for further development of other downstream coconut products. Currently, much of the coconut-based product processing is conducted on a home industry scale, producing items such as coconut oil, VCO, and coconut fiber crafts.
