Kasdi Subagyono, the Director General of Plantations at the Ministry of Agriculture, envisions Indonesia as a potential global leader in coconut production and its derivatives. Harnessing the vast coconut plantations thriving in the country’s tropical climate, Indonesia aims to strengthen the downstream processing of coconut-derived products. This initiative not only adds direct value to farmers but also broadens market access. Kasdi emphasizes the Ministry’s commitment to boosting the production and export of coconut-derived products, particularly coconut charcoal, even amidst the challenges posed by the COVID-19 pandemic.
Coconut charcoal, a versatile commodity, finds applications beyond traditional uses. According to Kasdi, besides its applications in pharmaceuticals, coconut charcoal is widely utilized as a fuel for Arab-style smoking in the Middle East. Additionally, the European market embraces it as a barbecue (BBQ) fuel. The export of Indonesian coconut charcoal reached 188,050 tons in 2019, with a total export value of $145.09 million, based on data from the Central Statistics Agency (BPS). Leading export destinations include China, Brazil, Germany, Lebanon, Malaysia, the Netherlands, Russia, Saudi Arabia, Sri Lanka, and Vietnam.
Highlighting the prospective and expanding market for coconut charcoal and its by-products, Kasdi indicates a shift in global preferences. While wood charcoal dominates the market, there is growing awareness among major consumers, especially in developed countries, about the environmental impact of deforestation for charcoal production. This awareness positions coconut charcoal as a sustainable substitute, aligning with eco-friendly practices and minimizing environmental damage.
Kasdi stresses the need for expanding market access for coconut charcoal and other high-value coconut-derived products, which are still underdeveloped in Indonesia. Products like virgin coconut oil (VCO), desiccated coconut, coconut fiber, liquid smoke, isotonic water, crude coconut oil (CCO), and coconut cooking oil hold significant potential for export. He emphasizes the importance of reducing the export of raw or semi-processed coconut products, such as copra, and increasing the focus on value-added processing within the country.
As Indonesia pushes forward with its vision to become a global leader in coconut production and processing, the coconut charcoal industry stands out as a sustainable and promising player. With a commitment to eco-friendly practices and value-added processing, Indonesia is poised to revolutionize the coconut-derived product market on a global scale. The resilience of the industry, as demonstrated by companies like PT Tom Cococha Indonesia, underscores the potential for Indonesia to dominate the world stage in coconut-related exports.