Indonesia's Bappenas targets global lead in downstream coconut exports

Indonesia's Ministry of National Development Planning, known as Bappenas, has set a strategic goal for the country to become a leading global exporter of processed coconut products, moving away from shipments of raw nuts. Minister and Bappenas head Rachmat Pambudy said the plan aims to capture greater value from a commodity in which Indonesia already ranks second worldwide, according to Antara and Liputan6.

"Not only achieving net export, but also becoming a leading exporter of coconut-based products with downstream derivative industries, so that we can obtain the highest possible value added," Pambudy said during a webinar on coconut downstreaming and competitiveness held in Jakarta on Wednesday.

A roadmap to 2045

Pambudy said strengthening the downstream coconut industry has been written into the economic transformation pillar of Indonesia's National Long-Term Development Plan (RPJPN) 2025–2045. To implement it, Bappenas has completed a Coconut Downstreaming Roadmap covering the same 2025–2045 period, according to Liputan6.

In the planning document, coconut is designated a national strategic commodity, projected to become a backbone of the country's manufacturing and industrial structure. Pambudy said policy would focus on building an integrated industrialization ecosystem, covering financing schemes, stronger research and innovation, quality standards and business incentives. The government also intends to raise production capacity, secure energy supply, develop human resources and improve supply-chain efficiency.

Over the medium term, the downstreaming effort will prioritize higher land productivity, a wider range of derivative products and the sustainable use of coconut processing plants.

Production scale and the raw-export gap

Pambudy argued that expanding coconut processing is urgent. Indonesia is the world's second-largest coconut producer after the Philippines. Data compiled by the Indonesian Coconut Processing Industry Association (HIPKI) from the Ministry of Trade, the Ministry of Agriculture, the statistics agency BPS and the International Coconut Community (ICC) put national production in 2025 at an estimated 15 billion nuts, or about 23% of global output.

Of that total, roughly 9 billion nuts, or 60%, are absorbed by local processors and turned into value-added goods such as desiccated coconut, coconut milk and copra. The remaining share of about 4 billion nuts, or 26.7%, is still exported as raw whole coconut — the lowest value-added form.

Rising demand and export value

The push comes as global demand for coconut-based products climbs across food, beverages, health, cosmetics, textiles and renewable fuel. HIPKI estimates the export value of Indonesia's coconut industry could reach US$2.48 billion in 2025.

Pambudy framed downstreaming as the route to holding a larger part of that global supply chain, rather than exporting unprocessed raw material. The strategy, he said, rests on financing, research, innovation, standardization and incentive schemes designed to make the sector competitive on international markets, supported by stronger human resources, energy supply and logistics.