Indonesia’s Industry, Farmers at Odds on Coconut Export Curb Proposal

Indonesia’s coconut processing industry is urging the government to impose at least a six-month moratorium on raw coconut exports or else local producers will have to lay off workers because of a supply crunch of the commodity as their main input. Farmers, however, refused any export controls, saying that would trap them in a low-price environment and that current global commodity price surges provide a rare opportunity to maximize income after years of depressed returns, reports The Jakarta Post on May 8

The Indonesian Coconut Processing Industry Association (HIPKI) has urged the government to temporarily halt coconut exports for six to twelve months to stabilize local prices that have increased by threefold in some areas since mid-2024.  “Many coconuts are being harvested prematurely, which disrupts future harvest cycles,” said HIPKI chairman Rudy Handiwidjaja.  He warned that the spike in coconut prices is rippling across multiple industries, from restaurants that rely on coconut cream to briquette manufacturers that use coconut shells.

The Indonesian Coconut Farmers Organization (Perpekindo) sees the recent price surge as a long-overdue opportunity for farmers who have faced decades of low margins.  Thanks to rising international prices, around 6 million farming families finally have the means to invest in replanting and improving their plantations.  
Perpekindo said that a blanket export moratorium could disrupt these positive developments.  Instead, the group proposed that any export restrictions be paired with a guaranteed minimum purchase price of Rp 5,000 per kg at the farmer level and a clear commitment to absorb farmers’ harvests.