Association calls for moratorium on raw coconut exports

A man peels coconuts before drying them into copra in Dolo Barat, Central Sulawesi, on Feb. 11, 2014. (Antara/Zainuddin)

The local coconut processing industry has urged the government to issue a moratorium on raw coconut exports in a bid to meet growing demand in the downstream industry.

Amrizal Idroes, vice chairman of the Indonesian Coconut Processing Industry Association (HIPKI), said the local industry faced a shortage in raw materials due to rampant coconut exports and declining crop productivity.

The industry needed a total of 14.6 billion coconuts in 2015, while available supply was only 12 billion coconuts, according to the association's data. Indonesia produces coconut milk, desiccated coconut, coconut oil, coconut butter and coconut cream.

�The supply shortage has caused production to decrease by 30 to 50 percent over the last two years,� he said in a discussion in Jakarta on Friday.

A moratorium, he continued, would ensure an increase in foreign investment in the country, open more jobs and give added value of US$5.8 billion to the economy.

Nurlaila Nur Muhammad, the Trade Ministry�s director of agriculture and forestry export products, said the government would review the idea to ensure that the moratorium would benefit farmers and develop downstream industries.

�It�s still just a plan and we will be very careful about making it into policy. We haven't decided yet whether it will be in the form of a moratorium or export duties,� she said.

Riau-based coconut farmer Muhaemin Tallo protested the idea because the export price is better than the price offered by the processing industry. The export price for coconuts is Rp 2,700 per kilogram while the local price is listed between Rp 500 and Rp 1,300 per kilogram.

He warned that an export moratorium would encourage farmers to convert their land into palm oil plantation.

Indonesia is the largest coconut exporter in the world. The value of coconut exports reached $1.13 billion last year with an export volume of 1.73 million tons. The three largest importers are the Netherlands, China and United States. (sha)

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