Jakarta. Household goods made from nipa and palm fronds are seeing huge potential in the global market, according to the Indonesian Export Financing Agency (LPEI). 

Exports of Indonesian palm and nipa palm fronds saw an 11.44 percent year-on-year (yoy) rise, reaching $29.32 million in 2023. The export volume also reached around 70,000 tons, up by 15.97 percent yoy. The fronds are commonly used for broomsticks, but they can also make handicraft goods such as plates, baskets, tissue boxes, and vases. Palm and nipah fronds export in January-June 2024 hit $ 10.18 million, down 27.59 percent y-o-y, while export destinations like China and India saw a decline, there are still opportunities in other countries.

"Looking at the realization of export value in the first half of 2024, the export value shows a decline until the end of 2024, especially to India, Japan, and China. The era of high interest rates weakens the global property sector and reduces demand for furniture and home decor products, consumers tend to choose essential products. However, there are export opportunities to countries with increasing demand such as Pakistan, the Philippines, Vietnam, South Korea, and Iran,” LPEI’s senior economist Donda Sarah Hutabarat was quoted as saying in a recent press statement.

CV Kahaka Internasional is among the Indonesian companies which are exporting palm ekel and nipa broomsticks.  Kahaka Internasional took part in LPEI’s new exporters coaching program in 2020. This mentoring program helped Rianto export its goods to seven countries, namely Pakistan, India, Nepal, Vietnam, Singapore, and Bangladesh. His company used LPEI’s export working capital credit. Since 2020, Kahaka Internasional has exported 8,500 metric tons of palm fronds or 622 containers with an export value of $3.5 million as of June 2024. 

"One container can hold up to 25 tons of fronds worth Rp 130-150 million per container. The fronds will later be processed again in the destination country into ready-to-use brooms,” Rianto said.

According to Rianto, the company also exports ready-to-use broomsticks at a price of Rp 10-12,000 per piece. “Distributors will then resell the broomsticks for 2 Singaporean dollars,” Rianto said.

Rianto started exporting after his friends who worked as areca nut collectors lost their jobs due to the pandemic. This prompted him to eye the export business.

"I realized that Sumatra has many palm oil plantations, and palm fronds are always thrown away every two weeks after harvest. I talked to buyers and convinced them to try palm fronds,” Rianto said.

The export of palm fronds from palm waste not only contributes to waste reduction. It also helps improve the welfare of palm oil farmers who are partners of CV Kahaka Internasional, according to Rianto. CV Kahaka Internasional partners with more than 300 palm oil farmers spread across 15 locations in Sumatra and Java, such as in Siantang, Dumai, Lampung, and Pemalang. These partners help supply Kahaka Internasional’s palm fronds.

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