Govt supports Rp776 billion coconut processing industry in Morowali

Rosan, who also heads the Investment Coordinating Board (BKPM), said in a statement here Tuesday that the investment would strengthen downstream processing and increase the value of Indonesia’s coconut commodities.

The facility, formally inaugurated on September 7, 2026, is designed to utilize the coconut value chain by turning flesh, water, shells and husks into export-ready products.

PT Freenow Food Industry plans to expand its processing operations from upstream to downstream through three development phases.

In the first phase, the plant will process about 184,000 tons of coconuts annually into coconut milk, concentrated coconut water, coconut oil and coconut shell charcoal, employing nearly 2,900 workers.

Later phases will target higher-value products, including packaged ready-to-drink beverages for export. The facility is designed to use nearly every part of the coconut.

At full capacity, the plant is expected to require 500 million coconuts annually, involving as many as 10,000 farmers and local community members.

Rosan urged the company to offer fair raw-material prices, support community plantation rejuvenation and involve local micro, small and medium enterprises in its supply chain.

He said the government would maintain a supportive business climate.

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Translator: Ahmad Muzdaffar Fauzan, Yashinta Difa