The Indonesian Coconut Processing Industry Association (HIPKI) and the Indonesian Coconut Farmers Association (APKI) have signed a Memorandum of Understanding (MoU) titled *Management and Processing of Whole Coconuts to Strengthen Domestic Supply Stability and Ensure Farmers' Welfare.* This initiative addresses Indonesia’s coconut crisis caused by prolonged droughts due to El Niño, which led to a significant decline in coconut harvests. Meanwhile, rising global demand for whole coconuts has driven neighboring countries like Malaysia, Thailand, China, and Vietnam to buy from Indonesia, leading to price surges and local shortages.  
The MoU aims to boost domestic coconut processing, create added value, generate jobs, and support economic growth. Over 99% of Indonesia’s coconut farms belong to small farmers, making their sustainability crucial. Rising coconut prices and shortages have disrupted production, causing layoffs in the industry. HIPKI and APKI, in collaboration with the Ministry of Agriculture and Kadin Indonesia, seek to strengthen downstream processing, improve farmer welfare, increase national revenue, and combat poverty in coconut-producing regions.

Source:
https://www.metrotvnews.com/read/NG9CQvyz-industri-pengolahan-dan-petani-siap-sukseskan-hilirisasi-kelapa-indonesia