Ministry, Danantara partner to develop coconut downstream industry

Agus Rosyid, a product quality supervisor at the ministry’s Directorate General of Plantations, said Danantara had surveyed several potential locations for the integrated industry.

“PTPN has begun intensive work in East Java to develop nucleus coconut plantations before expanding to plasma plantations. Danantara has also surveyed locations for integrated downstreaming,” Rosyid said Wednesday.

Speaking at a webinar, Rosyid said the program would target areas with abundant coconut supplies but limited processing capacity.

Related news: Indonesia targets 151,554 hectares for coconut downstreaming in 2026

He said the development was not intended to compete with existing processors but to expand industrial capacity in regions with significant raw-material supplies.

“The goal is to meet raw-material needs. Several years ago, some companies experienced shortages,” Rosyid said.

The downstreaming program is part of government efforts to strengthen the coconut industry under the 2025-2045 National Long-Term Development Plan, he said.

The government plans to develop about 500,000 hectares of coconut plantations, increasing industrial raw-material supplies, domestic value creation, regional growth and employment.

However, state funding covers only 221,000 hectares through 2027, making private investment and Danantara financing essential, Rosyid said.

Danantara’s coconut downstreaming plans form part of a broader agenda involving 26 national strategic projects valued at Rp225 trillion (about US$12.5 billion).

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Translator: Shofi, Kenzu