The Indonesian Ministry of Agriculture, led by Minister Andi Amran Sulaiman, has highlighted the critical role of downstream processing of coconuts in elevating the export value of the plantation sector. During an event in Halmahera Utara, Maluku Utara, the region’s coconut-derived products such as coconut milk and virgin coconut oil (VCO) produced by PT NICO were officially shipped to the Chinese market. This marks a shift from exporting raw shells or copra to exporting processed goods, which can lift annual sector value from around IDR 24 trillion to an estimated IDR 1,000 trillion if fully leveraged.
For the farmers, this downstreaming has had marked impact on livelihoods: raw coconuts were valued at only about IDR 3,000 per piece, yet processed products such as coconut milk or coconut water can fetch as much as IDR 40,000-50,000 each. The local industry has also created jobs and strengthened rural economies, while government support through distributor access, high-quality planting material, and a planned expansion of 10,000 hectares of new coconut plantations in Maluku Utara beginning 2026 further underpins the region’s strategic role in becoming a national upstream-to-downstream model.
