Indonesia seeks to boost coconut downstreaming cooperation with Sri Lanka

Indonesia’s Agriculture Minister Andi Amran Sulaiman has urged the Indonesian Ambassador to Sri Lanka, Dewi Agustina Tobing, to strengthen cooperation in coconut downstreaming with Sri Lanka to generate added value from the commodity.

“Downstreaming in the agricultural sector will be the government’s main focus to increase added value and the competitiveness of domestic products,” the minister said during a meeting with Ambassador Tobing in Jakarta on Friday.

He informed that one of the priority commodities is coconut, given its abundant availability in Indonesia.

“The direction from the President is obvious: we will focus on downstreaming the agricultural sector. Commodities with abundant raw materials, like coconut, must be prioritized,” he said.

He noted that there has been a shift in consumption patterns in several countries, particularly in China, from milk to coconut milk and other coconut-based products such as virgin coconut oil (VCO).

This presents a huge opportunity for Indonesia, which is one of the world’s largest coconut producers.

“China is shifting from milk to VCO. This is a blessing for Indonesia because European countries do not have a climate suitable for growing coconuts,” Sulaiman explained.

He further said that Indonesia exports around two million tons of coconut annually in raw form. Their export value is estimated at Rp20 trillion, he added. However, processing coconuts into downstream products could increase their value by two to three times.

“Downstreaming the coconut could potentially increase its value from Rp40 trillion to Rp60 trillion. This is what we want to push forward,” he stressed.

To streamline this effort, the minister has started exploring cooperation opportunities with friendly countries.

During their meeting, Sulaiman and Ambassador Tobing discussed the potential for collaboration with Sri Lanka in the development of coconut processing industries.

Tobing revealed that companies in Sri Lanka possess advanced coconut processing technology, including for coconut husks and shells. Developing this technology in Indonesia would be highly suitable and beneficial.

“Sri Lankan companies are genuinely interested in investing in Indonesia. They have the technology capable of processing all parts of the coconut into high-value products,” she informed.

The minister and the envoy also discussed potential cooperation in tea. According to Ambassador Tobing, several Sri Lankan companies are interested in investing in tea processing in Indonesia to increase the added value of national tea products.

“We also discussed tea processing. Companies in Sri Lanka are interested in utilizing Indonesian tea. With the right processing, the value of our tea products could be much higher,” she said.

Tobing also highlighted Indonesia’s achievements in rice production, which have caught the attention of the Sri Lankan government.

The Sri Lankan president and several high-ranking officials have expressed their interest in strengthening cooperation with Indonesia, especially in the field of food security.

“We have presented Indonesia’s rice production achievements to the president and ministers in Sri Lanka. They are very enthusiastic and want to work more closely with Indonesia, which is currently considered the world’s food basket,” she said.

Source: ANTARA

--Agencies