Indonesia's processed coconut business has big export potential

South Sumatra Province in Indonesia is poised to capitalize on growing global demand for processed coconut products, with the Ministry of Agriculture having issued export certification for round coconuts since 2004 to countries like China, Thailand, Vietnam, and Malaysia. However, a rejection of South Sumatran coconut exports to Thailand in 2019 due to shoot issues halted exports, until recently. In 2020, exports to China saw a significant increase, reaching 103.6 thousand tons, despite challenges in meeting Thailand's requirements. This trend continues into 2021, with a total of 22.3 thousand tons of coconut export certification already processed in the first three quarters. The Ministry of Agriculture's Gratieks program aims to further boost agricultural exports by adding value to products and increasing productivity, with a focus on processed coconut products such as coconut milk, dry dregs, charcoal, coconut water, and coconut husk. The Agricultural Quarantine authority also supports the export of agricultural products by providing food security guarantees for export commodities.