South Sumatra Exports Coconut and Black Pepper Derivatives Worth Rp 1.6 Billion
The South Sumatra provincial government released exports of coconut and black pepper derivatives worth Rp 1.6 billion in the Sultan Muda Xpora 2026 Implementation Programme at Bom Baru Port in Palembang on Tuesday, 28 April 2026. The commodities were shipped to China, Taiwan, and France.
The exported products include 46 tons of coconut shell charcoal and 25 tons of coconut chips to China. Additionally, 500 kilograms of black pepper and 21 tons of processed crackers were sent to Taiwan.
Next, coconut derivative products such as 3 tons of desiccated coconut and 5,000 units of coconut sugar, along with non-coconut products like 200 kilograms of cinnamon powder and 5 tons of turmeric powder, were shipped to France.
South Sumatra Governor Herman Deru stated that the export is part of efforts to strengthen the downstream processing of regional commodities while expanding global market access. “This export programme is part of the strategy to strengthen the downstream processing of coconuts in South Sumatra, which has so far been dominated by raw material exports,” said Herman Deru.
He added that derivative products like coconut shell charcoal briquettes have high economic value in the global market. According to him, processing coconut waste into value-added products demonstrates great potential for young business actors in the region. “This approach shows that coconut waste, previously considered valueless, can be processed into high-value products through downstream processing,” he said.
In addition to coconuts, black pepper is also one of the flagship export commodities whose development continues to be promoted. International market demand for pepper is considered stable, opening opportunities for farmers and business actors in South Sumatra to increase production and quality.
South Sumatra’s Coconut Production Reaches 61.7 Million Tons
South Sumatra has great potential in developing coconut commodities. In 2025, the region’s coconut production was recorded at around 61.7 million tons from an area of about 68,000 hectares, with the main production centres in Banyuasin Regency and Ogan Komering Ilir (OKI).
Nationally, coconut production reached around 2.86 million tons with annual growth of about 0.38 percent. Although the volume is large, the greatest opportunities are seen in the processing sector for derivative products.
Head of the South Sumatra Animal, Fish, and Plant Quarantine Agency, Prayetno Ginting, said that increasing exports must be accompanied by improvements in product quality and added value. “Going forward, our target is not only to increase volume but also export value through processed products,” said Prayetno.
He added that quarantine supervision is an important part in maintaining the quality of export commodities, including black pepper, to meet the standards of destination countries.
Role of Financing and Financial Inclusion
Head of the Financial Services Authority (OJK) for South Sumatra and Bangka Belitung, Arifin Susanto, said the Sultan Muda Xpora programme is part of the strategy to accelerate regional financial access through the Regional Financial Access Acceleration Team (TPAKD).
“Through financing schemes, business actors receive support in the form of production financing, letters of credit (L/C) for exports, and trade risk protection,” said Arifin.
The Financial Services Authority recorded financing disbursements for commodity business actors in South Sumatra reaching around Rp 869 million, as well as L/C-based financing worth about Rp 29 million.
The Sultan Muda programme targets the formation of 100,000 young entrepreneurs in South Sumatra as the driving force for regional commodity exports. Currently, the number of participants in the programme has reached around 9,020 people.
The government hopes that the younger generation can become the main driver in developing coconut and black pepper derivative products, including shell charcoal, coconut milk, and other processed food products.
Export Opportunities for Pepper and Derivatives Still Open
In addition to coconuts, black pepper is a commodity with considerable export potential. Global demand for spices is considered stable, especially from countries in Asia and Europe. National coconut exports in the first semester of 2025 were recorded at around 1.2 million tons, with main destinations including China, Vietnam, and Thailand.
With the increasing trend in global demand, South Sumatra is seen to have great opportunities to expand export markets, especially if downstream processing of products continues to be developed and the quality of commodities like black pepper is maintained.