JAKARTA — The price of whole coconuts in Indonesia has surged dramatically recently, primarily driven by high export demand and the needs of domestic industries. Minister of Trade Budi Santoso announced the concerning situation during a press conference on March 21, 2025. According to him, “There is a high demand for exports as well as requests from domestic industries.”
Data from the Ministry of Trade indicates that exports of coconuts in the shell (endocarp) reached 71,077 tons in January and February 2025, contributing to a price increase at local markets. Specifically, the price of whole coconuts in Pasar Senen, a popular market in Central Jakarta, has skyrocketed by 50 percent, rising from Rp10,000 to Rp15,000 per piece.
Nurlaela, a coconut seller from Pasar Senen, reported that the price increase began three months ago, long before Ramadan started. “This rise isn’t just due to Ramadan; the price has been increasing steadily for about three months,” she explained. Expectations are that prices could rise even higher during the pre-Eid rush, potentially reaching Rp25,000 to Rp35,000 per coconut, depending on size.
The spike in coconut prices has been attributed to supply shortages, particularly due to exports to markets like Malaysia and China. For instance, a significant portion of coconuts sourced from Sumatra is being sent abroad rather than reaching the usually reliant Java market. Nurlaela mentioned that about three months ago, coconut stocks ran out, preventing traders from selling coconuts for the usual price of Rp10,000.
In light of these developments, Minister Budi announced that the Ministry of Trade will conduct an evaluation involving stakeholders—including farmers, exporters, and industry representatives—to identify solutions to stabilize prices. “We need to gather everyone involved, from industry to farmers, to find a collective approach to this issue,” he stated.
Looking at the export data, a breakdown shows that China accounted for the largest share of coconut exports. In January and February 2025 alone, 68,065 tons of coconuts worth US$29.5 million were shipped to China, followed by Vietnam (2,180 tons), Thailand (550 tons), and Malaysia (280 tons). This export trend highlights the importance of addressing the local supply issues that are exacerbating price hikes in the domestic market.
The fluctuations in coconut exports reflect a broader trend over the past few years. Exports were valued at US$102.9 million in 2021, decreased to US$65.6 million in 2022, and then increased again to US$380,883 tons in 2023 and 431,915 tons in 2024. This rising pattern may have concealed underlying challenges in supply chains that, if not addressed, could hurt the coconut industry's stability in the long term.
Furthermore, analysts have pointed out that Indonesia is lagging behind countries like Vietnam, which reported coconut exports reaching US$1.1 billion in 2024. Nearly 600 companies in Vietnam are actively involved in coconut production and processing, establishing a competitive industry that is efficiently meeting international standards.
Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, has highlighted the need for a series of policies aimed at boosting Indonesia's coconut processing capabilities. Among his proposals is a moratorium on whole coconut exports for 3-6 months to stabilize supply and pricing in domestic markets. “The lack of stable supplies has substantially affected productivity and operations in the coconut industry,” he shared.
As part of the initiative to improve productivity, Putu suggests implementing export levies on coconut products and standardizing prices for coconut raw materials to ensure farmers and industries benefit fairly. Moreover, establishing more robust trade agreements could secure better access for Indonesian coconuts in global markets.
The challenges faced by Indonesia’s coconut sector underscore the need for immediate actions and strategic planning to ensure the industry remains viable and competitive both locally and abroad. With the upcoming festivities of Ramadan and Lebaran, the call to action has never been more urgent.
