RRI.CO.ID, South Minahasa – Processed coconut husk products from South Minahasa Regency, North Sulawesi, have entered the international market through their first export to Guangzhou, China. Assistant Deputy for Small Business Production and Digitalization at the Ministry of MSMEs Ali said the achievement reflects the transformation of local resources into high-value economic products.

“This achievement marks an important momentum in strengthening downstream processing while enhancing the competitiveness of regional flagship commodities in the international market,” Ali said in a statement received in Jakarta on Wednesday, April 29, 2026.

The South Minahasa Shared Production House (RPB) exported two containers of processed coconut husk products, including coco fiber, husk chips, and peat blocks, valued at Rp98.68 million. The export is considered a key milestone in promoting downstreaming of regional commodities, as well as increasing added value and global competitiveness of micro, small, and medium enterprises (MSMEs).

South Minahasa is known as one of the largest coconut-producing regions in North Sulawesi, with plantation areas covering 46,451 hectares. Data from Statistics Indonesia shows coconut production in the region reached 43,980 tons in 2025, contributing around 16.4 percent to the province’s total output.

The economic potential of coconut husk processing is significant, as every 100 kilograms of coconuts can produce around 25 kilograms of husk, which can be processed into 7.5 kilograms of coco fiber and 16 kilograms of coco peat.

Coco fiber is valued at up to Rp40,000 per kilogram in the domestic market, while coco peat is priced at around Rp13,000 per kilogram. These products have various uses, ranging from household goods and industrial components to planting media and environmentally friendly materials for erosion control.

To optimize this potential, the coconut processing RPB was established on September 23, 2022, as part of a downstreaming acceleration strategy. The facility enables more integrated processing of coconut commodities, thereby generating higher added value for farmers and MSMEs.

Ali explained that previously, farmers only utilized coconut meat, shells, and water. However, through assistance and strengthening of the business ecosystem, coconut husk—once considered waste—can now be processed into high-value products demanded by the global market.

The successful export to China, one of the world’s largest markets for coconut husk products, indicates that Indonesian MSME products are capable of meeting international standards. Going forward, the RPB management cooperative in South Minahasa will increase production capacity to meet growing market demand, while the RPB development model is expected to be replicated in other regions to strengthen commodity-based local economies.