Jakarta. A Chinese company has invested $100 million to build a coconut processing plant in Indonesia, Investment Minister Rosan Perkasa Roeslani announced on Tuesday. The investment supports the government’s efforts to boost local industrialization and reduce the country’s dependence on raw coconut exports. 

Earlier this year, Indonesia faced a domestic coconut shortage, which pushed up prices for coconut milk and drew complaints from local processors and households. The shortage was partly blamed on increasing exports of raw coconuts to China -- despite those exports contributing less than $1 million annually in value.

"We used to export raw coconuts to China, but that’s no longer the case. Now, coconuts will be processed locally before being sold overseas," Rosan told reporters at his office in Jakarta.

Rosan said the Chinese company -- described as the world’s largest coconut processing firm -- has already begun construction of the plant and plans to develop similar facilities in other parts of the country. He did not disclose the company’s name or the specific locations.

“They’ve already invested $100 million in one town, with plans to expand into others,” he added.

The minister stressed the importance of downstream processing for agricultural commodities like coconuts, saying it will not only increase added value but also generate jobs for farmers and local communities.

“China remains very active in investing in Indonesia -- not only in minerals but also in other key sectors like coconuts,” Rosan said.

Despite these developments, data from the Investment Ministry shows that total Chinese investment in Indonesia declined slightly to $3.6 billion in the first half of 2025, from $3.9 billion during the same period last year.

The Indonesian government has also broken ground on a major coconut processing plant in Morowali, Central Sulawesi, Rosan added.