Thursday, February 15, 2024

Indonesia and the Seduction of Coconut Island

Indonesia is famous for its seductive land of coconut islands. This is because the extent of coconut plantations in Indonesia reaches around 3.7 million hectares, most of which are smallholder plantations. The extent of these coconut plantations places Indonesia as the owner of the largest coconut plantations in the world, and the Philippines is in second place. Coconut trees mainly grow along the coast, and indeed Indonesia also has the longest coastline in the world. Even though Indonesia's coconut plantation area is number 1 in the world, its productivity is still lower compared to the Philippines, so the Philippines is also the number 1 coconut producer in the world. The coconut industry in the Philippines is also more advanced than Indonesia. Indonesia, on the other hand, prioritizes palm oil over coconut. The area of Indonesia's palm oil plantations is currently around 15 million hectares or more than 4 times the area of its coconut plantations.

Especially for VCO (Virgin Coconut Oil) products for the export market, apart from requiring better specifications or quality, they are also generally required to be accompanied by organic certification. Organic certification is something that is not easy, especially for small businesses. Information from APCC (Asia Pacific Coconut Community) states that the Philippines is currently the largest producer of VCO, even though the area of coconut plantations is still below Indonesia, with export volume continuing to increase. It was recorded that the Philippines' VCO exports in 2006 were 461 tons, then nine years later, namely in 2015, it increased to 36,313 tons. The coconut industry in the Philippines is also more developed than in Indonesia, this can be seen from the large number of export commodities made from coconut products. The Philippines exports 30 kinds of coconut products while Indonesia only exports 14 kinds of products.

Coconut is like a sleeping tiger. As a tropical country with the longest coastline in the world, the "sleeping tiger" needs to be awakened. This huge potential must be awakened, not weakened, so that coconut-based industrialization must be boosted especially as the productivity of Indonesian coconut plantations continues to decline, plus the demographic bonus so that the potential of natural resources must be optimized, and the vision of a golden Indonesia 2045. Don't let the demographic bonus become a demographic disaster because it is not properly managed and directed. Optimizing natural resources with a sustainable environmental perspective is a future economic solution that must be a common concern.

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