Heaptalk, Jakarta — In response to the escalating prices of coconuts in Indonesia, the Ministry of Industry has proposed a temporary halt on coconut exports. This recommendation comes as local coconut processing industries face significant challenges due to a shortage of raw materials.
Director General of Agro-Industry Putu Juli Ardika emphasized the urgency of establishing a comprehensive coconut management policy. The current scarcity of raw materials has disrupted industrial operations and led to layoffs in the sector.
“In coordination meetings with relevant ministries and agencies, we proposed implementing a moratorium on the export of whole coconuts as a short-term solution (3-6 months) to stabilize domestic supply,” stated Putu in an official written statement released in Jakarta on Sunday (23/3).
In addition to the export moratorium, the Ministry of Industry suggested imposing export levies on whole coconuts and their derivative products and setting a standardized raw material price that is fair to both farmers and industries.
“These mitigation measures are expected to enhance raw material availability and normalize the soaring domestic coconut prices,” added Putu.
Furthermore, the ministry proposed that the revenue generated from coconut export levies be managed by the Plantation Fund Management Agency (BPDP). The funds would then be reinvested into farmer welfare programs, including initiatives to boost coconut productivity, strengthen agricultural activities, empower small-scale coconut processing businesses, and develop an integrated coconut processing industry ecosystem.
Earlier, Trade Minister Budi Santoso acknowledged that the domestic supply of whole coconuts is limited due to high export demand. This situation has driven domestic market prices, increasing up to 50% in recent months.
“Coconuts are in high demand for coconut export, and domestic industries also require significant quantities. As a result, domestic industries sometimes face difficulties securing adequate supplies,” Budi explained at the Ministry of Trade in Central Jakarta on Friday (21/3).
Numerous traders have recently reported difficulties sourcing coconuts, and prices have surged dramatically. Initially priced at around Rp10,000 per coconut, the cost has now risen to Rp15,000 per unit and is expected to climb further ahead of the Eid al-Fitr holiday.
