Coconut Derivative Products Strengthen National Economic Resilience
Global geopolitical uncertainty continues to exert significant pressure on national economic stability. To safeguard domestic economic resilience, the optimisation of strategic commodity sectors, particularly coconut derivative products, is considered increasingly urgent.
The Chairman of the Indonesian Coconut Briquet Association (Asbrintara), Denni Fauzi, emphasised that as one of the world’s largest coconut producers, Indonesia possesses a comparative advantage that remains underutilised. He stated: “Indonesia is not only one of the world’s largest coconut producers, but also possesses very high-quality coconut. If the government and business actors pay serious attention to developing the coconut derivative industry, the impact could be very significant for the national economy.”
Various coconut derivative products—such as charcoal briquettes, activated carbon, coco fibre, and virgin coconut oil (VCO)—command very high demand in international markets. Success in penetrating these markets is considered crucial for managing global economic fluctuations.
Denni explained that amidst growing global uncertainty, economic pressures can emerge from multiple sources, including the shift of global investment toward safer assets and pressure on the rupiah exchange rate. Such conditions could potentially slow domestic industrial sectors, particularly those dependent on imported raw materials.
Increased coconut-based exports would not only generate foreign exchange but also serve as an instrument for strengthening the rupiah’s value and expanding employment opportunities. This sector is regarded as capable of providing strong economic support because it is based on local natural resources.
“The development of the coconut derivative industry can be a breath of fresh air for the national economy. Beyond contributing to the trade balance and gross domestic product (GDP), it also demonstrates to the international community that Indonesia possesses the finest coconut commodities,” Denni clarified.
As a concrete step, Asbrintara is pushing for strengthened synergy between the government and coconut derivative business actors. Key areas requiring improvement include regulatory strengthening, simplification of technical administration, and effective field implementation.
“Our hope is that the government and coconut derivative business actors can soon work in closer and faster synergy, from technical administration aspects through to field execution,” he concluded.