Coconuts are Scarce and Prices are Soaring, IPB University Expert: Here are the Causes and Solutions

Recently, coconut prices in Indonesia have experienced a significant spike and scarcity. Prof Amzul Rifin, an expert from the Department of Agribusiness at IPB University, explained that this phenomenon was triggered by an increase in export demand, especially for coconut oil.

According to Prof Amzul, while the value of coconut oil exports has increased, the quantity of exports has decreased, reflecting the higher world prices in 2025.

“The scarcity that occurs is more due to increased foreign demand. Rising world prices make exporting more profitable than selling coconuts in the domestic market,” Prof Amzul said.

Indonesia’s coconut production in 2024 was recorded at 2,89 million tons, with most of the production (98 percent) coming from smallholder farmers. In addition to meeting domestic needs, Indonesian coconuts are also exported in the form of raw and processed materials, especially coconut oil.

By 2022, around 67 percent of Indonesia’s coconut exports will be in the form of coconut oil, both semi-finished and raw. Growing foreign demand has led to more domestic coconuts being processed into coconut oil for export, leading to a scarcity of coconut supply in the domestic market.

To overcome this problem, Prof Amzul explained, strategic steps need to be taken to increase coconut supply security and reduce price fluctuations.

“Increasing productivity and expanding planting areas are the two main solutions to increase coconut production,” he said.

However, he continued, coconut faces competition from other crops, especially palm oil, which is often more profitable for farmers.

To attract farmers’ interest in planting coconut, Prof Amzul suggested increasing farmers’ income, both from coconut yields and from its derivative products. This is expected to ensure the sustainability of coconut production in Indonesia. (dh) (IAAS/KDP)