Bappenas Reveals Challenges of Coconut Downstreaming in Eastern Indonesia

Bappenas Reveals Challenges of Coconut Downstreaming in Eastern Indonesia
Workers filter coconut husks to make craft materials in Saloloang, North Penajam Paser Regency, East Kalimantan. (Antara)

STAFF Expert in the Development of Leading Sectors and Infrastructure at the Ministry of National Development Planning/National Development Planning Agency (PPN/Bappenas) Leonardo AA Teguh Sambodo revealed the potential and challenges of coconut downstreaming in eastern Indonesia.

“The provinces in eastern Indonesia that produce quite a lot of coconuts are Maluku, NTT (East Nusa Tenggara), and North Maluku. These are three provinces that actually have potential, but the industry only exists in North Maluku, if I’m not mistaken. “In Maluku and NTT there is no industry yet, so perhaps in the future these provinces will become the main part,” said Teguh Sambodo in the Media Briefing for the Launch of the 2025-2045 Coconut Downstream Roadmap, in Jakarta, Friday (27/9).

Based on data from the Central Statistics Agency (BPS) in 2023, production of coconut plantation crops in Maluku was 91.20 thousand tons, North Maluku 200.10 thousand tons, and NTT 65.70 thousand tons.

The achievement of coconut production in the three provinces is unequal compared to the various main coconut producing provinces, most of which are in the Western Region of Indonesia (KBI) and several others in the Eastern Region of Indonesia (KTI). For example, East Java 233.70 thousand tons, Riau 406.90 thousand tons, North Sulawesi 269.50 thousand tons, and Central Sulawesi 206.30 thousand tons.

Regarding this problem, efforts to increase productivity in KTI need to be made by opening a coconut processing industry. This is because 278 coconut processing industries (16 of which are integrated) or 83 percent of the total are on the islands of Java and Sumatra, while the rest are in Central Sulawesi, Gorontalo, West Kalimantan and North Sulawesi.

Most of the coconuts planted using traditional cultivation patterns in smallholder plantations result in minimal levels of productivity, because the seeds are of low quality, cultivation techniques are still simple (not according to guidelines and are not sustainable), the planting patterns are irregular, and there is no fertilization or drainage/management. micro water.

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“What the nata de coco industry wants to start is opening facilities in North Maluku, this is a step that is actually realistic. “These things will be facilitated by the government in the future, how this integrated industry can also be invited to expand to Eastern Indonesia,” he also said.

The government has also established a National Strategic Project (PSN) in West Papua for the development of coconuts by utilizing Domestic Investment (PMDN) to open coconut plantations which will be processed into oil, coconut milk, etc.

“Indeed, the process is still several years away because now we are just starting to prepare for the construction of the plantation, but this is a momentum to also see the potential and perhaps the availability of land which is still quite large in eastern Indonesia and see coconut as one of the plants that has the potential to be cultivated,” Teguh said.

Also read: Downstreaming is a strategic step to support Indonesia’s future development

The next challenge is related to illegal coconut exports, which mostly occur in eastern Indonesia, high logistics prices and minimal availability of human resources.

In the future, the government is said to be using satellites to control illegal exports of coconuts, post-harvest processing of coconuts into finished products in KTI to reduce logistics prices, and build a coconut processing industry to absorb workers.

“These things have been planned and several solutions will be outlined in the road map. “Hopefully, later we will collaborate together to implement it,” he said again.

As additional information, Bappenas is said to be launching a Road Map for Coconut Downstreaming 2025-2045 on Monday (30/9). (Ant/N-2)

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