RRI.CO.ID, Jakarta – Indonesian coconut-based products are beginning to penetrate the global market, marking a shift from raw material exports to value-added finished goods.

Two containers of coconut fiber, husk chips, and peat blocks were shipped from the Joint Production House (RPB) in South Minahasa Regency, North Sulawesi, to Guangzhou, China. The initial export was valued at IDR 98.68 million (approx. USD 5,699).

Assistant Deputy for Production and Digitalization of Small Businesses at the Ministry of Micro, Small, and Medium Enterprises (MSMEs), Ali, said the achievement reflects the success of transforming local resources into export commodities.

“This milestone strengthens downstream processing while enhancing the competitiveness of regional commodities in the international market,” he said in a written statement received in Jakarta on Tuesday, April 28, 2026, as quoted on the Ministry of Micro, Small, and Medium Enterprises (MSMEs) official website.

South Minahasa is one of North Sulawesi’s largest coconut-producing areas, with plantations covering 46,451 hectares and producing 43,980 tons in 2025, about 16.4 percent of the province’s total output.

Ali explained that farmers previously focused only on the fruit and shell. Now, coconut husks are processed into economically valuable products through mentoring and ecosystem development.

From every 100 kilograms of coconuts, farmers can produce 25 kilograms of husk, which is further processed into 7.5 kilograms of coco fiber and 16 kilograms of coco peat. Both products command competitive prices in the domestic market.

Coco fiber is widely used in industrial, household, and environmental applications, ranging from automotive components and growing media to erosion control materials.

To optimize this potential, the government established the Joint Production House for processed coconut products in South Minahasa on September 23, 2022. The facility enables integrated production, increasing added value for farmers and MSMEs.

The RPB program is part of the Ministry’s strategy to promote micro and small-scale manufacturing based on regional specialty commodities. Currently, 16 RPBs manage 12 types of commodities across Indonesia.

Through the RPB, the government provides production facilities, equipment and machinery assistance, technical and management guidance, and expanded market access via a business-to-business approach. The initiative aims to strengthen the value chain and improve the welfare of MSME actors. ***