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.

Biochar for Coconut Plantation

The productivity of Indonesian coconuts is decreasing so that even though it has the largest coconut plantation area in the world. This of course makes the land less productive and the production from coconut plantations is also low. As a comparison, the productivity of Indian coconut reaches 300 grains per tree or 7.5 times that of Indonesia, which averages only 40 grains per tree per year. In addition, the number of coconut plantations that must be replanted is very large and is not proportional to the speed of replanting. Due to the lack of maintenance, there were also many areas of damaged coconut plantations, which in total reached hundreds of thousands hectares.

Indonesia has experienced the critical condition of coconut and now many coconut producing countries in the Asia Pacific region are experiencing a similar condition. Most of the coconut trees that exist are trees planted in the decade after the first world war or in the 1930s, even though the age of the coconut is around 80 years. This means that the tree is more than 80 years old or has passed its productive period. FAO has even given this warning since 2013. As a consequence, industries are experiencing a severe shortage of raw material supplies amid the increasing demand for coconut-based products, as experienced by the Sambu Group. Sambu group is the largest coconut industry in Indonesia which is located in Riau which has had to buy the coconut raw materials from West Kalimantan province in the last two years. Though Riau province itself is the largest coconut producer in Indonesia, especially Indragiri Hilir regency.

Overcoming the crisis, of course, takes time and is neither fast nor easy. A number of structured, systematic and massive efforts need to be done consistently to get optimal results and according to goals. As a product which is mainly for food and added all its parts that can be utilized, overcoming the crisis of coconut plantations or the upstream sector of the coconut industry is important. In addition, the expansion of the coconut plantation area also needs to be increased to around 6 million hectares so that the supply for industry is sufficient, in comparison Indonesia's palm oil plantations have reached around 14 million hectares. Of course that is the next step after replanting and repairing damaged coconut plantations can be overcomed. 

To increase coconut productivity, apart from the use of superior seeds, there are also adequate agricultural cultivation techniques. It is very important to improve soil quality so that plants can optimize nutrient uptake. No matter how good the seeds are, if the soil quality is low and farming techniques or cultivation techniques are perfunctory, the results will also not be optimal. For example, on acid soils that make nutrient absorption low and also the soil microbial activity, whatever the plant will not grow optimally. Biochar as a soil amendment is effective and efficient to improve the quality of the coconut plantation soil. Although coconut is a plant that is resistant to salinity, a decrease in salinity will also have a good impact on the coconut tree, and this can also be done with the application of biochar.

Like palm oil, coconut industrialization should also be possible. With this industrialization, the production process becomes efficient and all the coconut fruit harvested from the plantation can be processed all. Population growth that continues to increase and it is estimated that the world's population will reach around 10 billion by 2050 certainly requires sufficient food and various other supporting things such as edible oil and other coconut-derived products. Pyrolysis technology is very good for use in the coconut processing industry. This is in addition to biochar as the main product of pyrolysis with its main use in coconut plantations, excess energy pyrolysis can be used for various needs of the coconut processing industry, both in the form of heat and electricity. Coconut processing products are much more numerous and varied than palm oil. An industry will also need a continuous supply of raw materials with a certain amount and this means that the performance level of its coconut plantations must be maintained in such a way as to meet the needs of the industry and biochar application is the right solution.

Creating an Integrated Coconut Industry Prototype Based on a Narrow Coconut Plantation

The integrated coconut industry has not been widely found in Indonesia, whereas by processing coconut in an integrated manner, the processing will be effective and efficient. Every part of the coconut tree can be used, including the fruit or all parts of the fruit. By utilizing coconut fruit as a whole, apart from producing a number of products, there is also a part of the fruit that can be used as an energy source for the production process. This condition will also minimize and even eliminate the use of energy from outside. In addition, the use of energy from biomass is carbon neutral so that it is environmentally friendly because it is renewable energy and saves production costs. Production costs that can be saved due to the use of biomass waste such as coir/fibre  and coconut shells will make business profits bigger.

Coconut plantation owners with an area of several tens or hundreds of hectares can create an integrated coconut industry pilot project (prototype). By making a prototype of the integrated coconut industry, it can be the basis for further scale up. Product characteristics, production processes to market opportunities can be better studied in this way. After all the information has been obtained and mastered properly, it becomes easier to develop, including if you want to find investors for the development of the business.

 Indeed, the route or method above takes longer and the effort is harder than selling only coconuts from the plantations, especially young coconuts that are sold, of course it is faster and easier. But if the big vision is built by optimizing this potential, the route or method above will be much more effective and more applicable in a number of coconut production centers wherever they are. With this integrated approach to the coconut industry, besides maximizing profits, it is also a zero waste production activity. Unlike palm oil, which has more limited product variants, there are more coconut product variants so that the integrated coconut industry approach from one place to another can be different.