Indonesia: Global market demand weakens, coconut industry experiences difficult times

Published Oct 9, 2023

Tridge summary

The coconut industry is experiencing a decline in demand for its derivative products due to multiple factors including weakening economies, geopolitical tensions, and the impact of El Nino. The decline in China's economic growth has also affected their purchasing power for coconuts. Furthermore, the decrease in water levels caused by El Nino is affecting coconut distribution in Indonesia. The government's intervention and support are crucial to help advance the coconut sector and stabilize the industry without being heavily dependent on the global economy.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Reporter: Noverius Laoli | Editor: Noverius Laoli KONTAN.CO.ID - JAKARTA. Even though the Covid-19 pandemic has subsided, hopes for a global economic recovery still seem far away. New challenges are emerging, ranging from geopolitical tensions resulting from the Russian-Ukrainian conflict to the impact of El Nino on the environment. All this has a negative impact on the coconut industry. Market and Statistics Officer from the International Coconut Community (ICC), Alit Pirmansyah, said that coconut derivative products, both in Indonesia and globally, have experienced a decline. Factors such as the weakening economies in Europe, China and America as well as the impact of the war in Europe have caused a decline in demand. "Moreover, coconut products are included in the non-essential category," he said in his statement, Monday (9/10). In the previous year, the decline in trade in coconut derivative products reached more than 10%, and predictions for this year are around 10%. ...

Source: Kontan