Commodities

Indonesia eyes coconut dowstreaming as demand surges

Antaranews.com July 22, 2026

Indonesia eyes coconut dowstreaming as demand surges - ANTARA News Bahasa Indonesia Latest News Popular News Top News

Antara Photo Home Current IssueWorldBusiness & InvestmentExplore IndonesiaArticlePhotoPress Release × Home Home

version one Home version two Home version three Home version four Pages Blog Style 1 Style 2 Style 3 Submenu item 3

Multi level 1 Multi level 2 Submenu item 4 Submenu item 5 Blog single detail Style 1 Style 2 Style 3 Search Result Style

Indonesia eyes coconut dowstreaming as demand surges Indonesia eyes coconut dowstreaming as demand surges July 22, 2026

18:03 GMT+700 Trucks loaded with coconuts at the PT Natural Indococonut Organik (NICO) processing factory in Kupa-Kupa

Village, North Halmahera, North Maluku, on Friday (August 1, 2025). ANTARA FOTO/Andri Saputra/rwa. Jakarta (ANTARA) -

Malaysia remains heavily reliant on Indonesia for its coconut supply, with around 80 percent of the country’s

demand met by Indonesian exports, according to the Indonesian Ministry of Agriculture. The agricultural product quality

inspector at the ministry's Directorate General of Plantation, Agus Rosyid, said Malaysia’s strong reliance on

Indonesian coconuts presents an opportunity to strengthen the domestic coconut industry, particularly through downstream

process. "Malaysia relies on Indonesia for nearly 80 percent of its coconut needs. Two years ago, when they faced a

raw material shortage, they asked the ministry not to impose an export ban out of concern for their domestic

industry," he said on Wednesday. Speaking at a discussion in Jakarta, Agus noted strong regional and global market

demand highlights a significant opportunity for Indonesia to increase the added value of its coconut products.

Derivative coconut products with strong market potential include coconut cream, coconut milk, coconut oil, virgin

coconut oil (VCO), and various other processed items. Therefore, the government is encouraging a shift from exporting

raw coconuts to producing value-added products, allowing more economic value to be retained domestically. According to

2023 data from the International Coconut Community (ICC) and the Ministry of Agriculture, Indonesia is the world's

second-largest coconut producer after the Philippines. National production reached 2.87 million metric tons of copra

equivalent across approximately 3.34 million hectares of plantations, accounting for about 24 percent of global

production. Agus said that around 98 percent of the country's coconut plantations are owned and managed by

smallholders, involving approximately 5.5 million farmers. ICC and ministry data showed that of the total plantation

area in Indonesia, about 2.55 million hectares, or 76.5 percent, consists of productive trees. The potential for value

addition remains significant across the entire coconut value chain from the husk, shell, and meat to the coconut water,

with an estimated total value-addition potential of US$6.55 billion. According to ICC data, Indonesia's coconut

product exports were valued at approximately US$2.11 billion in 2022. However, the Ministry of Agriculture noted that

national plantation area and production have been declining due to several factors, including land conversion to other

commodities, pest infestations, and unstable farmgate prices. In addition, national productivity remains relatively low,

averaging around 1.1 metric tons per hectare, well below the estimated potential of 3.5 to 5 metric tons per hectare. To

improve the commodity’s competitiveness, the government is preparing a coconut downstreaming program with 151,554

hectares of land targeted for development in 2026, supported by a budget of roughly Rp427 billion (around US$23.8

million). The initiative will span 28 provinces, focusing on developing production zones, high-yield seed supply,

productivity enhancement, and supply chain strengthening. Related news: Ministry, Danantara partner to develop coconut

coconutdownstreamingcoconut industryMalaysiacoconut exports Related News Indonesia aims to become top exporter of

downstream coconut goods 23 hours ago Ministry, Danantara partner to develop coconut downstream industry yesterday 16:08

Indonesia targets 151,554 hectares for coconut downstreaming in 2026 yesterday 15:15 Indonesia to expand coconut, CPO

exports to Lebanon: minister 9th July 2026 Banyumas 'ant sugar' eyes global market dominance: Minister 25th June 2026

Gov't backs Maluku coconut and cassava downstreaming initiatives 10th June 2026 Indonesia prepares 280 million

plantation seeds to boost economy 9th June 2026 Indonesia looks to China to absorb rising durian production 13th April

2026 Sweeting the world: Inside Banyumas' global coconut sugar ambition 15th February 2026 Indonesia targets coconut

downstreaming prep by late 2026: minister 3rd February 2026 Indonesia pushes agricultural downstreaming to boost

farmers’ income 19th January 2026 Govt to halt raw coconut exports, pushes downstreaming initiative 9th October 2025

Latest News Indonesia pushes for upgraded ASEAN-South Korea economic pact 9 minutes ago Indonesia warns vape ban over

drug abuse 11 minutes ago RI police chief, FBI director discuss stronger law enforcement ties 15 minutes ago Prabowo

says drug eradication is key to Golden Indonesia 2045 19 minutes ago Ocean Institute to back Indonesia's global maritime

vision: Minister 28 minutes ago Popular News Indonesia unveils plan for world-class international financial hub 21st

July 2026 Indonesia begins first Russian oil imports under 150-mln-barrel plan yesterday 20:04 Indonesia advances 93

hydrogen projects worth US$2 billion yesterday 05:32 Indonesia aims to attract high end tourist through Bali marina

project 21st July 2026 Strengthening Indonesia's role in global AI governance 21st July 2026 Indonesia urges ASEAN to

deliver tangible benefits, stability 21st July 2026 Kertajati Airport MRO hub targeted to begin operations in 2026 21

hours ago Indonesia fast-tracks permits for dairy farm investors 20th July 2026 Indonesia eyes becoming Asia's hydrogen

hub yesterday 16:24 Indonesia plans 40,000 fish farms to boost protein self-sufficiency yesterday 19:08 Top News FM

Sugiono highlights community resilience at ASEAN-Russia PMC 30 minutes ago Indonesia pitches US$1.8 billion data center

sector to Chinese firms 1 hour ago Indonesia buys 12 Italian Leonardo M-346F Block 20 jets 1 hour ago Bali blocks

foreign investment in 18 business categories 2 hours ago Prabowo, FBI's Patel discuss return of smuggled Indonesian

artifacts 5 hours ago Indonesia calls for stronger ASEAN-US cooperation as stability anchor 8 hours ago Indonesia, China

prioritize key projects under Twin Parks scheme 10 hours ago Indonesia eyes becoming Asia's hydrogen hub yesterday 16:24

Indonesia targets 151,554 hectares for coconut downstreaming in 2026 yesterday 15:15 Indonesia moves to strengthen

defense ties with Turkiye, Malaysia yesterday 14:49 Latest News Top News Popular News Current IssueWorldBusiness &

InvestmentExplore IndonesiaArticlePhotoPress Release Bahasa Indonesia Term of Use Privacy Policy Cookie Policy About Us

Source: en.antaranews.com