Bappenas: Success of Coconut Downstreaming Begins with Upstream Reform

Jakarta (ANTARA) - The Head of the Coconut Downstreaming Acceleration Task Force at the Ministry of National Development Planning/Bappenas, Sukmo Harsono, has stated that the success of national coconut downstreaming must begin with reforming the upstream sector. Accelerating the rejuvenation of old plants and providing certified superior seeds are considered crucial steps for Indonesia to capitalise on rising global market demand while improving farmer welfare. “When global demand for coconuts is soaring, we are faced with the reality that most of our coconut plantations are old, many have been damaged by abrasion, and public interest in replanting remains low,” Sukmo said in the Bappenas Podcast “Restoring the Glory of Nusantara Coconuts: Building the Foundation from Upstream,” according to an official statement in Jakarta on Tuesday. Therefore, according to Sukmo, downstreaming cannot only discuss the processing industry but must also start with improving coconut plantations as the main foundation. Indonesia is recorded as one of the world’s largest coconut producers, with around 5.3 million farmers depending on the commodity for their livelihoods. “Most coconut plantations are still managed traditionally by smallholders, while productivity continues to face pressure due to the increasing age of plants and the reduction of productive land area,” he said. On the other hand, strengthening downstreaming also opens up opportunities for developing value-added derivative products, such as coconut oil, coconut water, desiccated coconut, coconut milk, and raw materials for the food and non-food industries. Sukmo explained that one of the main challenges in the coconut replanting programme is the limited availability of certified superior seeds, given that the provision of seed sources has not been a primary focus, making availability disproportionate to the needs of large-scale replanting. “If replanting is carried out without using superior seedlings with clear varieties and origins, then in five to six years the harvest results will not meet expectations. We must not only pursue the number of trees planted but must also ensure the quality of the seedlings. If this is not done correctly, we risk losing competitiveness and even becoming a coconut importing country,” he stated. To address these challenges, the Ministry of National Development Planning/Bappenas, through the 2025–2045 Coconut Downstreaming Roadmap, is encouraging the strengthening of governance in the coconut sector from upstream to downstream. This roadmap serves as a joint guideline for ministries, regional governments, business actors, and farmers, and is expected to be a reference in accelerating plantation rejuvenation, increasing productivity, and creating greater added value for the national economy. With more productive plants and better access to the downstream value chain, farmers are expected to earn more stable incomes and higher selling prices. “Our hope is simple: all parties move towards the same goal. If rejuvenation goes well, farmers become more prosperous, and downstreaming develops according to the planned direction, then the Indonesian coconut industry will once again become a major force at the global level,” he concluded.