Coconut Prices Surge Amidst High Export Demand

The rising prices of coconuts have recently emerged as a significant concern in Indonesia, particularly amidst high export demands and limited domestic supply. On March 21, 2025, Minister of Trade, Budi Santoso, openly acknowledged the problem at a press briefing in Jakarta. He described the domestic supply of whole coconuts as "limited" due to the booming international market.

Over the past few months, the price of coconuts has skyrocketed, reportedly increasing by up to 50%. Initially, these coconuts were selling at around Rp10,000 per unit, but prices have now surged to Rp15,000. The price hike has had a profound impact on both consumers and merchants within the local market.

Many merchants are now facing the dual problem of dwindling supplies and elevated prices. At Pasar Senen, a prominent market in Jakarta, coconut seller Nur Laela, age 50, expressed her concerns: "My boss says that coconuts from Sumatra aren't coming to Java because they're being exported to Malaysia. That's why they are hard to find. This increase is not just due to Ramadan; prices have been on the rise for three months now.”

Laela further anticipated that prices could escalate even further to between Rp25,000 and Rp35,000 before the Eid celebrations. She explained that availability has plunged; whereas she used to sell 100 coconuts in a day, her sales have now plummeted so drastically that selling even a single basket has become a challenge. "Ramadan usually boosts sales, but I've barely sold out a basket now," she lamented.

The sentiment among traders echoes a broader concern about the coconut market's direction. Laela reported that just three months prior, coconuts were scarce, and the price of Rp10,000 per unit is now only a memory. "You can’t find that price anymore; it’s gone with the wind!" she said, underscoring the challenges faced by local sellers.

Trade Minister Santoso noted that the surge in prices and supply constraints are tied closely to high demands for coconut exports. He stated in his address, "Coconut demand is strong, particularly for export. Domestic industries are also vying for supply. This dual pressure from both exports and domestic needs complicates the market equilibrium. We need to address these issues collaboratively to stabilize prices.”

In reaction to this unprecedented surge in prices, the Trade Ministry is implementing a thorough evaluation process that will bring together various stakeholders, including domestic industry representatives, exporters, and farmers. Santoso emphasized the necessity of balancing domestic demand with export needs to prevent future shortages and reduce cost inflation.

However, as the government is looking to formulate a solution to the escalating prices, it has yet to announce any specific measures aimed at controlling coconut exports or improving domestic supply. In the interim, merchants continue to grapple with the increase in coconut prices, which has significantly impacted their profit margins. With costs climbing, many traders are forced to bear additional operational expenses.

Laela expressed her frustration as she articulated how the rising costs also affect her processed goods. As she explained, "Once coconuts are grated and turned into coconut milk, the cost burden falls entirely on me without any way to pass it to consumers—especially when many are already complaining about inflated prices." This added layer of financial strain paints a worrying picture for Indonesia's coconut economy.

As coconut prices continue their ascent, both consumers and merchants remain anxious about the future. The Trade Ministry’s forthcoming strategies will be critical in determining how effectively these challenges can be managed. Santoso's government is set to engage in dialogue with stakeholders in a bid to create sustainable solutions for the coconut market, which is vital not only for local economics but also for the various cultural traditions that rely on this beloved commodity.

In conclusion, the Coconut Price Crisis represents more than just a financial issue; it reflects the tension between global markets and local needs, where increased demand abroad threatens to destabilize local supply and community traditions. As Indonesians prepare for the busy festive season ahead, how the government chooses to respond could fundamentally reshape the coconut trade and the livelihoods of many involved.