Indonesian Political, Business & Finance News

Strengthening Downstreaming, Rosan Supports Coconut Processing Plant in Morowali

| | Source: NTVNEWS.ID Translated from Indonesian | Investment
Strengthening Downstreaming, Rosan Supports Coconut Processing Plant in Morowali
Image: NTVNEWS.ID

The Minister of Investment and Downstreaming/Head of BKPM, Rosan Roeslani, fully supports the operation of PT Freenow Food Industry’s integrated coconut processing industry in Morowali, Central Sulawesi. The project, with a total planned investment of Rp776 billion (approximately US$47 million), is projected to absorb up to 2,900 workers.

Minister Rosan emphasised that the inauguration of the operational facilities, which took place on 7 September 2026, is part of the government’s strategy to expand the scope of downstream processing within the national plantation sector.

“This investment is an important step in driving the downstream processing of national coconut commodities. We hope that the presence of Freenow will not only add value to Indonesian coconut commodities but also provide a positive contribution to the national economy, create jobs, improve the welfare of coconut farmers, and strengthen the coconut processing industry ecosystem in Indonesia,” Minister Rosan stated in an official statement in Jakarta on Tuesday (8/9/2026).

The development of this processing industry is designed to progress gradually from upstream to downstream. In the initial stage, the factory will focus on processing coconut milk, coconut water concentrate, coconut oil, and coconut shell charcoal. Subsequently, the company plans to expand into higher value-added products such as coconut milk and ready-to-drink beverages for export.

Every part of the coconut, from the flesh, water, and shell to the husk, will be fully utilised (zero waste). In the first phase, PT Freenow Food Industry targets a raw material absorption of up to 184,000 tonnes of coconuts per year. Once fully operational, raw material requirements are expected to surge to the equivalent of 500 million coconuts per year, involving up to 10,000 farmers and local communities.

Minister Rosan, who also serves as the CEO of Danantara, emphasised the importance of healthy partnerships between industry and the local supply chain through guaranteed fair purchase prices, support for the reforestation/rejuvenation of smallholder plantations, and the involvement of regional MSMEs.

“The Indonesian government will continue to provide support to create an even better investment climate so that investors can grow alongside Indonesia and provide the greatest possible benefits to the community,” Minister Rosan added.

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