The Ministry of Agriculture, in collaboration with the Coalition of Coconut Producing Regional Governments (Kopek), has agreed to expedite the process of downstreaming and the domestic coconut industry. This initiative aims to enhance the added value of coconut products, a key export commodity for Indonesia, amid growing demand from China and Malaysia. The downstreaming and domestic coconut industry is scheduled to commence in 2025, following President Prabowo Subianto's directive during a recent meeting. The agenda of this meeting included the acceleration of national downstreaming projects and follow-up priority projects, encompassing the agricultural sector. Agriculture Minister Amran has stated that the global demand for coconuts has increased significantly, resulting in a substantial rise in coconut prices. These prices have risen from IDR 1,300/kg to IDR 4,000, IDR 5,000, and even IDR 7,000/kg.
Furthermore, Amran has assured that the government will expedite the development of the coconut industry from upstream to downstream, with a particular focus on production centres. Kopek has also been requested to participate more actively and promote this downstream and investment programme. This initiative represents a valuable opportunity to enhance the welfare of farmers while ensuring that the added value remains within the region. Amran also encouraged intercropping systems in coconut areas. He requested that coconut land be used to cultivate rice, corn, cacao and other agro-climatically suitable food commodities. This step is expected to enhance farmers' income and contribute to national food security, thus facilitating self-sufficiency and augmenting farmers' income. In Indonesia, ten regions are recognised as coconut production areas, including Indragiri Hilir (Riau), East Tanjung Jabung (Jambi), Banggai (Central Sulawesi), West Tanjung Jabung (Jambi), Sumenep (East Java), North Halmahera (North Maluku), Banyuasin (South Sumatra), South Minahasa (North Sulawesi), Pandeglang (Banten), and Padang Pariaman (West Sumatra).
