The Ministry of Trade (MOT) will be implementing a levy on coconut exports, the details of which are currently being finalised by the Minister of Trade Regulation (Permendag) and the Minister of Finance Regulation (PMK). Presently, there is no export levy for coconut. Alongside palm oil, the government has included cocoa and coconut in a list of commodities subject to plantation funds, collected by the Plantation Fund Management Board with the aim of encouraging the development of sustainable plantations. This is in accordance with Presidential Regulation 132 of 2024 on Plantation Fund Management. One of our key sources of funding is derived from the export levies and fees contributed by plantation businesses.
Rudy Handiwidjaja, Chairman of the Indonesian Coconut Processing Industry Association (Hipki), has urged the government to impose a levy on coconut exports, in addition to imposing a six-month moratorium on coconut exports. The domestic market is in crisis, and surging exports to China are driving up prices. The traditional market is facing a price range of IDR 25,000 - IDR 30,000 per piece, due to a supply that meets only 40% - 50% of industry demand. Some industries have closed due to a lack of raw materials, exacerbated by last year's El Niño weather and global coconut shortages. Indonesia is the only country permitted to export coconuts, driving up global prices.
