The coconut market in Indonesia is currently experiencing a significant surge in prices, driven by a scarcity of stock. This situation has drawn attention from experts and officials alike, particularly due to the escalating demand for coconut exports, especially coconut oil. Amzul Rifin, an agribusiness expert from IPB University, highlights that the increased export demand is a major contributor to the domestic coconut crisis. On March 28, 2025, Amzul pointed out that while the value of coconut oil exports has risen, the volume of these exports has tended to decrease, reflecting the higher global prices.
According to Amzul, "Higher global prices make exports far more profitable than selling coconuts in the domestic market." This sentiment underscores the challenges faced by local farmers and the overall coconut supply chain in Indonesia. In 2024, Indonesia's coconut production reached 2.89 million tons, with a staggering 98% produced by smallholder farmers. However, the situation is exacerbated by the fact that in 2022, around 67% of coconut exports were in the form of crude or semi-finished coconut oil, which further limits the availability of fresh coconuts for local consumption.
Amzul suggests that to mitigate the crisis, there needs to be an increase in productivity and an expansion of coconut planting areas. However, he acknowledges that a significant challenge lies in the competition with oil palm, which is often more profitable for farmers. "To keep farmers interested in growing coconuts, their income must be increased from fresh coconuts and derivative products," he emphasized, advocating for strategies that do not compromise the needs of both domestic and export markets.
In the province of Kepri, Governor Ansar Ahmad has committed to ensuring the availability of santan (coconut milk) amid rising prices and dwindling supplies. He explained that the issue has garnered attention from the provincial government, which is actively monitoring the situation through the Department of Industry and Trade (Disperindag) of Kepri. Following a coordination meeting at the Kepri Regional Police, he noted, "We received results regarding this matter, and we are closely watching the supply of santan."">
Governor Ahmad also pointed out that the decreasing stock of santan in Kepri is a direct result of increased coconut exports. He has met with the Minister of Trade, requesting that coconut exports be limited to safeguard local supplies. The Minister responded by stating that the coconuts being exported belong to farmers, thus presenting a significant opportunity for them. This exchange highlights the delicate balance between supporting local farmers and ensuring that domestic needs are met.
To address the santan shortage, the Central Government has pledged to assist in finding a suitable scheme to meet domestic demands. Ahmad expressed hope that domestic coconut industries could compete effectively, thereby benefiting coconut farmers. He stated, "This is the time to make coconut farmers happy," emphasizing the importance of supporting local agriculture.
Despite the challenges, Ahmad assured that the current stock of basic necessities in Kepri remains sufficient and stable. However, he cautioned stakeholders to help control the prices of essential commodities in the markets. He explained that price increases often occur during periods of high demand, but he urged traders not to exploit these situations. "In market law, when demand rises, prices tend to increase, but we must ensure that this rise does not become an opportunity for traders to take advantage of consumers," he warned.
The intertwined issues of coconut supply, export demands, and local market needs underline the complexities faced by Indonesia's agricultural sector. As exports continue to rise, the challenge remains to find a balance that supports both local farmers and the domestic market. With experts like Amzul Rifin advocating for increased productivity and government officials like Governor Ansar Ahmad pushing for measures to stabilize local supplies, the hope is that a comprehensive approach can be developed to address these pressing issues.
In conclusion, the situation surrounding the coconut market in Indonesia is a microcosm of broader agricultural challenges, where local needs must be carefully balanced against the lucrative opportunities presented by international markets. As stakeholders work together, the focus remains on ensuring that both farmers and consumers can thrive in a changing economic landscape.
