Jakarta.  The Indonesian Coconut Processing Industry Association (HIPKI) is urging the government to implement the coconut downstream policy to tackle the shortage of raw materials that threaten the sustainability of Indonesia's coconut processing industry.

HIPKI’s daily chairman, Rudy Handiwidjaja, said that while the government had launched the Coconut Downstream Industry Roadmap (PJHK) on Sept. 30, its impact has yet to be felt. "Until now, the effects of the government’s initiative have not been felt by us," Rudy said during a press conference in Jakarta on Wednesday.

Rudy explained that rising coconut exports have led to a shortage of raw materials domestically, causing prices to spike and affecting production in the coconut processing industry. HIPKI said many coconut processing companies have been forced to cease operations due to the scarcity of raw materials, despite Indonesia having the world’s second-largest coconut plantations.

As a result, HIPKI is calling for the immediate implementation of the coconut roadmap, including restricting or banning the export of whole coconuts and imposing export duties. Rudy explained that if Indonesia bans the export of raw coconuts, it could stabilize the supply of raw materials for domestic industries, increase demand for processed coconut products locally, expand production capacity, and create new jobs.

He said that added value from coconut products should benefit Indonesia, not other countries that process raw materials sourced from Indonesia.

"We understand that when raw coconuts are exported, the added value is created abroad. We want that added value to remain in Indonesia for the welfare of the Indonesian people," he said.

HIPKI is confident that Indonesia has the capacity to develop a sustainable coconut processing industry. However, Rudy stressed that this requires the government’s commitment to providing clear policies, including stricter export regulations. He warned that without strong regulations, the domestic coconut processing industry would be at risk, and Indonesia would continue to import coconut milk, despite having the raw materials domestically.

"We do not want a situation where Indonesia’s coconut processing industry cannot produce coconut milk due to a lack of raw materials, and then we import it from abroad, even though the raw material comes from Indonesia. This is a problem that must be addressed. We urge the government to pay more attention to the coconut processing industry in Indonesia," he concluded.

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