Indonesia's Coconut Oil Export Value Rises Amid Falling Volumes
Indonesia Eximbank Institute reported robust resilience in Indonesia’s coconut oil exports despite global supply pressures and production fluctuations. Sectoral research by the institute noted Indonesia remains the world’s second-largest exporter of both crude (HS 1513.11) and refined coconut oil (HS 1513.19), with a global market share of approximately 22% in 2025.
Indonesia Eximbank Institute Chief Rini Satriani stated that export value grew despite a drop in shipment volume. Between January and December 2025, export volume fell by around 18%, but cumulative export value rose over 43%.
“The rise in export value was primarily driven by price surges due to limited raw material and domestic supply, exacerbated by El Niño which forced some plants to temporarily reduce production capacity. Export market pressure for coconut oil has intensified,” Rini said in a written statement on Sunday, 31 May 2026.
She added that Indonesia ranked second globally in coconut oil exports in 2025 with a 22% market share, behind the Philippines as the top exporter at 49%, followed by the Netherlands in third with 10%. Despite competition, the competitiveness of refined coconut oil exports remains resilient.
Rini highlighted Indonesia’s high export market diversification, with over 90 destination countries for coconut oil. This reduces reliance on major markets and enhances bargaining power. Key destinations include the Netherlands, China, the Philippines, Malaysia, and the US, with potential for further penetration into Europe and non-traditional regions.
Global demand for pure coconut oil continues to rise due to healthy lifestyle trends and natural product usage in food, cosmetics, and healthcare. As one of the world’s largest coconut producers, Indonesia has potential to target sustainability-focused markets such as Europe.
The IEB Institute projects a moderate 9% growth in coconut oil export value for 2026, influenced by competitors like the Philippines recovering production and coconut prices normalising. Rini said Indonesia needs strategic measures to strengthen its global market position.
Despite stable export prospects, the main challenge for Indonesia’s coconut oil sector lies in raw material supply resilience. National coconut production faces pressure from aging trees, low smallholder productivity, extreme weather impacts, and rising exports of whole coconuts.
She noted that coconut plantation rejuvenation and strengthening downstream processing are key strategies to sustain the national industry. The government has initiated replanting of 44,900 hectares in 2024, targeting expansion to hundreds of thousands of hectares by 2026-2027.
On downstream processing, enhancing value-added coconut oil industries is crucial for boosting competitiveness, utilising domestic raw materials, and exporting higher-value products. With policy support, including plantation rejuvenation and downstream capacity strengthening, Indonesia has significant potential to maintain its position as a major global player in the coconut oil market.