A critical situation has emerged within the coconut processing sector as a consequence of a significant increase in coconut exports, resulting in a scarcity of raw materials domestically. The absence of regulatory oversight concerning export practices has intensified this predicament, thereby impacting the creation of coconut-derived products, even amidst substantial consumer demand.
Dippos Naloanro Simanjuntak, who chairs the Coconut Products Industry Division at the Indonesian Coconut Processing Industry Association (HIPKI), clarified that the surge in exports, coupled with reduced local harvests due to a recent dry spell, has triggered a sharp rise in coconut prices. Speaking in Jakarta on Wednesday, Dippos stated, “Globally, Indonesia stands alone as a coconut-producing nation that still permits the export of whole coconuts without any governing framework.”
Prices have escalated by as much as 100 percent, with current local market prices ranging from Rp 14,000 ($0.86) to Rp 15,000 per coconut, while farmers are fetching up to Rp 6,000 per coconut. Consequently, coconut processing industries are functioning at a mere 30 percent of their capacity, unable to achieve their full production potential due to the elevated cost of raw materials.
Source : JAKARTAGLOBE.ID