Indonesia Continues Efforts for Downstreaming of Coconut Industry: Minister

Jakarta: Coordinating Economic Affairs Minister Airlangga Hartarto highlighted continued governmental efforts for downstreaming of the coconut industry having diverse derivative products to become export-oriented for increasing added value for farmers and having an economic multiplier effect.
 
“The downstream policy implemented by the government requires collaboration and cooperation from all parties. We want development to have a large impact and benefit the wider community, including coconut farmers and entrepreneurs,” he noted in an official statement received here, Friday.
 
He also invited all parties to contribute and collaborate to encourage downstreaming of the coconut industry and commit to creating a plantation investment climate, especially for the coconut commodity.

The Indonesian government has made efforts to develop the coconut agribusiness in the form of support to increase the productivity of coconut plants through the provision of qualified seeds and development of the coconut processing industry through diversification of its derivative products, Hartarto stated.
 
Until now, the average productivity of domestic coconuts is still less than one ton per hectare, so it requires collaboration for its development, he said.
 
The minister noted that coconut is the second superior commodity after palm oil and provides an economic value of up to Rp30 trillion to the export growth of the agricultural sector that reached 24.98 percent on an annual basis, or amounted to US$380 million, as of July 2022.
 
The high coconut exports contribute to increased yields, income, and employment. Hence, the government is committed to continuing to maintain the noteworthy performance of the commodity, including by planting one million genjah (dwarf) coconut trees in Solo Raya, Central Java.
 
The government has also built a coconut nursery to optimize plantation exports in an effort to recover the national economy and implement a closed loop scheme for the dwarf coconut commodity in Sukabumi in collaboration with PT Unilever.
 
The government has also supported farming financing for farmers through the People’s Business Credit (KUR). With a KUR ceiling in 2022 reaching Rp373.17 trillion and three-percent interest, coconut farmers and entrepreneurs can make the most of this financing facility for expansion and innovation in business development. 
 

(WAH)