The domestic coconut processing industry is facing raw material supply issues, leading to decreased productivity and utilisation. This has a detrimental effect on the sustainability of industrial activities and the number of employees. Considering the raw material shortage affecting the domestic coconut processing industry, the Director General of Agro-Industry of the Ministry of Industry, Putu Juli Ardika, recognizes the need to implement a coconut management policy by proposing the implementation of a moratorium on the export of whole coconuts for six months. This moratorium is a short-term solution aimed at stabilising domestic supply.
Alongside this, the Ministry of Industry has proposed other measures, such as the imposition of export levies on coconut and its derivatives, and the establishment of remunerative raw material price standards for farmers and industry. These export levies and standardised commodity prices are expected to increase the availability of raw materials and stabilise the rising price of coconut in the country. The Plantation Fund Agency (BPDP) will manage the proceeds of the coconut export levy, with the benefits being returned to farmers to support their welfare through programmes to increase coconut plant productivity, strengthen farming activities, empower smallholder coconut processing businesses, and develop an integrated coconut processing industry ecosystem.
