Indonesia World's Second-Largest Coconut Oil Exporter

Indonesia’s coconut oil exports have demonstrated resilience amid global supply pressures and domestic production fluctuations. Despite a decline in export volume throughout 2025, export value surged by over 43 per cent due to rising international prices. Head of Indonesia Eximbank Institute, Rini Satriani, stated that Indonesia remains the world’s second-largest exporter of both crude and refined coconut oil. “The increase in export value was primarily driven by a price surge caused by limited raw material and domestic supply, exacerbated by El Niño, which led some factories to temporarily reduce production capacity,” she said in a written statement on Saturday, 30 May 2026. In the January-December 2025 period, Indonesia’s coconut oil export volume decreased by approximately 18 per cent. However, cumulative export value rose by more than 43 per cent compared to the previous period. According to her, Indonesia’s export competitiveness remains relatively strong globally, supported by a diversified export market. Currently, Indonesian coconut oil is exported to over 90 countries, reducing dependence on any single major market. Key destinations include the Netherlands, China, the Philippines, Malaysia, and the United States. Rini noted that export opportunities remain significant, especially in European and non-traditional markets with growing demand for sustainable products. Global demand for refined coconut oil continues to rise due to health-conscious lifestyle trends and natural ingredient usage in food, cosmetics, and healthcare industries. “As one of the world’s largest coconut producers, Indonesia has potential to penetrate markets focused on sustainable products, such as the European Union,” she said. For 2026, the IEB Institute forecasts coconut oil export value to grow by around 9 per cent.