Chinese investment boosts Indonesia's downstream coconut industry

As the world's largest producer of coconuts, Indonesia has a promising coconut industry with continuously growing export potential. According to the planting statistics for 2023-2025, the national coconut planting area in Indonesia in 2025 showed positive growth.Popular plantations dominate with 3,274,321 hectares, a slight increase from 3,273,278 hectares in the previous year. Only 443 hectares of national large-scale plantations and 36,591 hectares of private large-scale plantations, although the private sector is smaller, but the highest productivity. 2025 private plantations are expected to top the productivity of 1,381 kg/ha; national large-scale plantations, 1,285 kg/ha; and popular cultivation, 1,127 kg/ha, which is the highest value since 2022. Total coconut production from popular plantations is estimated at 2.82 million tons, up from 2.79 million tons the previous year, and remains the mainstay of the country's coconut production. China is investing heavily in Indonesia, and according to the Minister of Investment China has invested $100 million (about Rp 1.67 trillion) in coconut processing facilities. This has helped Indonesia strengthen the downstream segment of the coconut industry and increase the added value of coconut products, shifting from the export of raw materials to the export of finished and semi-finished products (e.g., coconut oil, coconut milk, etc.).In December 2023, the domestic price of coconut was 6,375 rupiahs per kilogram, a slight increase compared to the previous month, while the international price decreased from $1,115 to $1,109 per ton.In 2023, Indonesia's exports of coconuts amounted to 2.17 million tons, with a total value of US$1.31 million (about 21.52 billion rupiah), indicating a strong demand for Indonesian coconut in the international market. China is the largest export market for Indonesian coconuts, with a turnover of US$228,947 (about Rp 3.74 billion), accounting for 17.42% of the total exports. semi-finished products (especially coconut oil under HS 15131990) accounted for nearly 30% of the exports. riau province is the main center of coconut production in Indonesia, with a planted area of 440,000 hectares and production of 411,000 tons. in 2023, the national coconut planted area was 3.31 million hectares, with production of about 411,000 tons. The country has 3.31 million hectares under coconut cultivation, of which 2.54 million hectares are fruit-bearing trees, 410.78 million hectares are unfruit-bearing trees, and 375,000 hectares are non-fruit-bearing or damaged trees.