RRI.CO.ID, Jakarta - The Indonesian government is accelerating the development of the coconut downstream sector to boost value added and strengthen the national processing industry. The initiative, in partnership with Danantara Indonesia, will establish integrated downstream coconut industrial zones across several regions.

The program targets areas with abundant coconut production but limited processing facilities. In addition to maximizing raw material utilization, the project is expected to spur regional economic growth and create new jobs.

“The state-owned plantation holding PTPN has begun work in East Java to develop core coconut plantations and will expand to plasma plantations. Danantara Indonesia has also surveyed several sites for the integrated downstream industry,” said Agricultural Product Quality Supervisor at the Plantation Directorate General, Agus Rosyid, during the webinar Downstream Processing: Boosting the National Coconut Industry’s Value Added and Competitiveness in Jakarta on Wednesday, July 22, 2026, as quoted by Antara.

Agus stressed that the industry’s development is not intended to compete with existing processors, but to strengthen regions lacking sufficient industrial capacity to absorb farmers’ harvests. “The goal is to meet raw material needs, as some companies faced shortages a few years ago,” he said.

He added that downstream development is part of the government’s strategy under the National Long-Term Development Plan (RPJPN) 2025–2045, which aims to expand coconut plantations to around 500,000 hectares.

Funding through the State Budget (APBN) will cover only about 221,000 hectares until 2027, requiring investment support from private parties, including Danantara Indonesia.

Danantara’s involvement aligns with the development of 26 national strategic downstream projects worth around IDR 225 trillion (USD 12.56 billion), one of which includes the coconut industry. ***