Indonesia, known as the world’s second-largest coconut producer, is taking significant steps to transform its coconut industry by shifting its focus from raw exports to processed products. This strategic move aims to enhance the value of its coconut exports and boost the national economy.
Minister of Trade Zulkifli Hasan, commonly known as Zulhas, highlighted this new direction during his speech at the 51st International Cocotech Conference & Exhibition, held at The Westin Hotel Ballroom in Surabaya on Monday (July 22).
“Indonesia is the second-largest coconut producer in the world and also a major exporter of coconut products and their derivatives,” Zulhas stated.
Zulhas emphasized the need to increase exports of coconut products, identifying several processed forms that could be exported, such as coconut oil, coconut milk, desiccated coconut, and coconut water. “Following the President’s directive, we need to stop exporting raw coconuts. Every part of the coconut tree can be utilized to create valuable products,” he explained.
Currently, Indonesia has begun exporting nata de coco, charcoal briquettes, and coconut shells. “These products are gaining popularity due to their high quality,” Zulhas added.
In his speech, Zulhas also pointed out the versatility of coconuts, reiterating the importance of products like “coconut oil, coconut milk, desiccated coconut, and coconut water.” He noted that President Jokowi has mandated the use of every part of the coconut tree to generate valuable products.
“We have started exporting nata de coco, charcoal briquettes, and coconut shells. These products are in high demand because of their excellent quality,” he reiterated.
The theme of the 51st Cocotech Conference, “Utilizing Coconuts as the Tree of Life and Green Energy,” underscores the significance of the coconut sector as a sustainable solution.
Read also: Frost Phenomenon in Bromo Tengger Semeru Attracts Tourists Amid Cold Spell
President Joko Widodo further elaborated on the vast potential of Indonesia’s coconut industry. He highlighted that Indonesia has 3.8 million hectares of land dedicated to coconut cultivation, producing 2.8 million tons annually. The export value of these products is approximately $1.55 billion, equivalent to IDR 25.1 trillion.
“During Dr. Zevina’s speech, it was mentioned that we are the second-largest producer in the world. The provinces with the highest production potential are North Sulawesi and Riau,” he said.
“Our exports, amounting to $1.55 billion (IDR 25.1 trillion), are not insignificant. This figure can be increased further if we seriously focus on coconut-related matters,” Jokowi added.
Jokowi also stressed the importance of increasing coconut production through the use of quality seeds, proper maintenance, and efficient harvesting methods. Additionally, he highlighted the necessity of developing the downstream sector to add value and create jobs.
“Utilizing downstream technology is essential. I have seen coconut waste being converted into bioenergy. This is crucial for the future and can be further developed. Moreover, coconuts can be turned into bioavtur. This is a major task to increase usage and demand from other countries,” he concluded.
This strategic shift towards processing and value addition in the coconut industry is expected to boost Indonesia’s economic growth, create job opportunities, and position the country as a leader in the global coconut market.
