Indonesia's coconut economic potential is huge, but still lower than the Philippines

Published Sep 27, 2024

Tridge summary

The Indonesian government is planning to improve the governance of the country's coconut industry in order to potentially increase its economic value. The country has fallen behind the Philippines in coconut production and faces challenges such as low productivity and underutilization of by-products like coconut water, fiber, and shells. The government plans to adopt a management approach similar to that of the Philippines, which has seen success in increasing productivity. The goal is to build domestic downstreaming of coconut products to increase economic benefits.

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Original content

Reporter: Lailatul Anisah | Editor: Yudho Winarto KONTAN.CO.ID - JAKARTA. The Indonesian government plans to improve the governance of coconut commodities which are considered to have great economic potential but have not been optimally utilized. This was conveyed by the Expert Staff of the Minister of PPN for the Development of Leading Sectors and Infrastructure, Leonardo A.A Teguh Sambodo, who revealed that Indonesia, which used to be the world's largest coconut producer until 2020, has now been overtaken by the Philippines. "The Philippines currently has 3.7 million hectares of coconut land, while Indonesia has almost 3.4 million hectares," said Teguh in a media briefing in Jakarta, Friday (27/9). According to Teguh, one of the main obstacles faced by the coconut industry in Indonesia is low productivity, especially because the majority of coconut plantations are managed by conventional farmers. Coconut productivity in Indonesia is still stagnant at 1.1 tons per hectare, with ...

Source: Kontan