Indonesia Aims for Coconut Downstreaming Expansion in 2026

Indonesia is set to push for the downstreaming of its coconut industry by 2026, targeting 151,554 hectares of coconut plantations to enhance added value and boost export competitiveness. The initiative prioritizes the production of processed coconut products such as oil, coconut water, coconut milk, and activated carbon derived from coconut shells, moving beyond the export of raw coconuts or primary processed goods. As one of the world's largest coconut producers, Indonesia possesses significant potential. However, it has been noted that a substantial portion of coconuts are exported as raw fruit or in basic processed forms, leading to missed opportunities in value addition. The government's move aims to address these challenges by transforming coconuts into higher-value products, thereby solidifying the position of Indonesian coconut products in the global market. Specific measures are expected to include the expansion of processing facilities, technical assistance, and strengthened quality control, with the potential for ripple effects across related industries.