The coconut industry downstreaming in Indonesia is entering an\nexpansion phase alongside increasing demand for processed coconut\nproducts in the global market. Strengthening processing capacity is a\nvital component in increasing the added value of the commodity and\nexpanding economic benefits for farmers and local workers.<\/p>\n
PT Royal Agro Industri (RAI) is taking this step by adding coconut\nprocessing production equipment from Beyond, China. The new machinery\nwill be used to add production lines in several existing factories and\nsupport the operations of a new processing facility currently under\nconstruction in Riau.<\/p>\n
CEO of PT RAI, Johanna, stated that the company currently operates\nthree coconut processing plants: PT Dewa Agricoco Industri in Halmahera,\nNorth Maluku; PT Tri Mustika Cocomanaesa in Manado, North Sulawesi; and\nPT Samuda Coco Indonesia in Sampit, Central Kalimantan. \u201cAs global\ndemand for processed coconut products continues to rise, we are\ncurrently building another factory in Riau, namely PT Garuda Coco\nIndustri,\u201d said Johanna on Wednesday (16\/09\/2026).<\/p>\n
The equipment purchased from Beyond will be deployed in the Manado,\nSampit, and Riau facilities. In already operational factories, the\nmachinery will be used to add production lines, while in Riau, the\nequipment will be installed from the start of the factory\u2019s\noperations.<\/p>\n
Johanna targets that all new equipment will be operational for\nproduction by 2027. With this additional capacity, the company projects\na processing capability of more than 2 million coconuts per day.<\/p>\n
The Riau factory is targeted to have a processing capacity of up to 1\nmillion coconuts per day. Meanwhile, the Manado facility will reach\n500,000 units, Sampit 350,000 units, and the Maluku factory\napproximately 250,000 units per day.<\/p>\n
This capacity will be utilised to produce various coconut\nderivatives, ranging from low-fat and high-fat desiccated coconut,\ncoconut milk, charcoal, cocofiber, and cocopeat to crude coconut\noil.<\/p>\n
Product diversification is one way to increase the economic value of\ncoconuts compared to selling the commodity in its raw form. The owner of\nPT RAI, Jerry Hermawan Lo, stated that downstreaming is one of the\nprimary reasons the company is developing the coconut processing\nindustry. According to him, the coconut commodity holds greater economic\npotential when processed before being marketed abroad.<\/p>\n
\u201cIn the past, Indonesian coconuts were exported whole at low prices;\nnow, with these factories, we can process them before exporting.\nNaturally, processed coconut has a much higher economic value. This is\nwhat is known as coconut downstreaming,\u201d said Jerry.<\/p>\n
PT RAI noted that its processed coconut products are currently\nexported to more than 33 countries, including Germany, Spain, Turkey,\nChina, and the United States. The development of this industry is also\nsaid to have absorbed thousands of workers.<\/p>\n
On the other hand, expanding industrial capacity makes the\nsustainability of raw material supply a crucial factor. Therefore, the\ncompany stated it has partnered with thousands of coconut farmers\nthrough assistance and training to increase productivity. In addition to\nstrengthening the supply chain, Jerry initiated the \u2018Coconut\nScholarship\u2019 programme by allocating Rp10 from every coconut processed.\nThis programme aims to support the education of the younger generation\nin the agricultural sector.<\/p>\n
To date, 1,300 students are reported to have received scholarships\nfrom various universities, including the University of Lampung, North\nSumatra University, IPB University, Hasanuddin University, Bangka\nBelitung University, Sam Ratulangi University, Nusa Cendana University,\nSultan Ageng Tirtayasa University, Riau University, Nusa Nipa\nUniversity, and STPK Banau North Halmahera.<\/p>\n
Jerry stated that the development of the coconut industry must\nproceed alongside the empowerment of farmers and human resources. He\nbelieves Indonesia possesses great potential in the coconut commodity,\nso domestic processing must continue to be developed to produce\nhigher-value economic products.<\/p>\n
\u201cWe are here with a commitment to prosper coconut farmers and local\nyouths. Furthermore, our ambition is to restore the glory of Nusantara\u2019s\ncoconuts in the eyes of the world,\u201d he concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/coconut-downstreaming-accelerated-national-processing-capacity-targeted-to-reach-2-million-units-per-day-1789631643", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }