Indonesia to Introduce Export Levy to Stabilize Coconut Market

Jakarta, June 2025. The Indonesian government is preparing to implement an export levy on whole coconuts as part of efforts to secure local supply and address rising domestic prices. According to Trade Minister Budi Santoso, the levy is aimed at balancing international sales with the needs of the domestic industry.

“Coconut exports are growing, but local processors are struggling to compete with international buyers,” Budi said. “We want to manage this through a selective export levy.”

This decision follows a previous consideration of a full export ban, which sparked concern among farmers and exporters. While the final levy rate is still being determined, a decision is expected within days.

Coconut Prices Double Amid Export Booms

Domestic coconut prices have soared in recent months. In local markets, grated coconut now sells for Rp 14,000 to Rp 15,000 ($0.86–$0.92) per piece nearly double the price earlier this year. Farmers are receiving up to Rp 6,000 at the farm gate.

Local processing factories, facing high raw material costs, have cut operations drastically. Some are now running at just 30% capacity.

Export Figures: China Leads the Market

According to the Central Statistics Agency (BPS):

• • 2024 Exports: 431.91 million kg of whole coconuts valued at $113.5 million

  • China imported 392.5 million kg ($102.5M)

  • Vietnam: 31.3M kg, Thailand: 3.9M kg, Malaysia: 3.8M kg

  • Q1 2025: 109.9M kg exported, worth $45.6M up 146% from Q1 2024
    
    

Indonesia is also the largest coconut producer in the world, with a 2022 output of 17.19 million metric tons, followed by the Philippines with 14.93 million metric tons.