Ministry of Agriculture Targets 151,554 Hectares for Coconut Downstreaming in 2026

The Ministry of Agriculture is targeting the development of a coconut downstreaming area spanning 151,554 hectares in 2026, as part of efforts to increase the supply of industrial raw materials, strengthen the commodity’s added value, and drive regional economic growth. Agus Rosyid, Agricultural Product Quality Supervisor at the Directorate General of Plantations, stated that this target is part of the government’s push to strengthen coconut downstreaming as mandated in the 2025–2045 National Long-Term Development Plan (RPJPN). ‘This year our target is 151,554 hectares with a budget of around IDR 427 billion, excluding seeds,’ Agus said during a coconut downstreaming webinar in Jakarta on Wednesday. This area represents a significant increase compared to the previous year’s programme realisation, which reached 1,975 hectares with a budget of approximately IDR 10.92 billion. Agus noted that to date, 28 provinces have been included in the coconut downstreaming area development programme. Through this programme, the government distributes aid packages consisting of coconut seeds, organic fertiliser, as well as support for land preparation and planting costs. The programme is expected to increase the supply of raw materials for the processing industry, strengthen downstreaming, and simultaneously enhance the added value of the coconut commodity domestically. Furthermore, Agus added that the government has also allocated a budget of around IDR 154.38 billion for the development of a 51,721-hectare coconut downstreaming area in 2027. Agus stated that Indonesia currently remains the world’s second-largest coconut producer, with production of approximately 2.132 million tonnes. The national coconut plantation area reaches around 3.2 million hectares, 98 per cent of which are smallholder plantations. However, national coconut productivity is still considered low. He noted that current productivity is only around 1.1 tonnes per hectare per year, far below the production potential of 3.5 to 5 tonnes per hectare per year. According to Agus, increasing productivity is one of the main challenges in developing the national coconut industry, alongside the high proportion of ageing trees and the suboptimal state of domestic downstreaming. To support the development of the downstreaming ecosystem, the government is also collaborating with various parties, including the private sector, PT Perkebunan Nusantara (PTPN), and Danantara.