As a tropical country, Indonesia has abundant natural resources. One that has great potential for export is coconut oil. Indonesian coconut oil is a commodity that has prospects for development and is most in demand in the export market because of its many benefits.
Coconut oil is one of the main products produced from the processing of coconut meat, both through the drying process of the coconut meat (dry extraction) and the process of squeezing the coconut milk (wet extraction).
Coconut oil is widely used as a substitute for palm cooking oil because it contains fatty acids that are good for health, does not cause fat deposits in the body, and reduces the risk of heart disease.
Coconut oil is also widely used as an ingredient in the beauty industry, because coconut oil can be used as an effective moisturizer for skin and hair.
Processed data compiled by the Indonesia Eximbank Institute (IEB Institute) states that the cumulative export value of Indonesian coconut oil products for the January-July 2022 period managed to increase at the level of 36.33% year on year (yoy) to USD 768.68 million compared to same period in 2021 amounting to USD 563.82 million.
This increase in exports occurred due to increased interest from the main export destination countries. The government is also encouraging the development of the downstream coconut industry, especially to encourage exports of coconut oil products with their various value-added derivatives.
In 2021 the United States is listed as Indonesia’s largest export destination country, reaching 22.13% or a total of USD 212.24 million. The next export destination country was Malaysia with around 18.16% amounting to USD 174.21 million, followed by China (17.15% or USD 170.23 million), the Netherlands (12.46% or USD 119.55 million), and Sri Lanka ( 7.36% or USD 70.64 million).
Based on the type of product, coconut oil and its fractions are known as the main export product of coconut oil derivatives which are mostly exported by Indonesia with a portion of around 55.45% which is equivalent to USD 531.85 million.
As for the comparison of processed data for the 2020-2021 period, the export value of coconut oil has experienced an impressive increase. The export value of Indonesian coconut oil in 2021 experienced impressive growth, up 75.89% yoy to USD 959.23 million (compared to 2020 of USD 545.37 million).
Indonesian coconut oil products occupy the third position in 2021 as a world exporter of coconut oil products after Sri Lanka. This proves that Indonesian coconut oil products have good competitiveness in the global market.
The Head of the Division of the IEB Institute, Rini Satriani said “The competitiveness of Indonesian coconut oil products is also supported by productivity and the quality of the coconuts produced, one of which is influenced by climate and soil conditions. In addition, processing technology is also a driving factor that is able to bring Indonesian products to compete in the global market,” said Rini.
Source: https://sumut.antaranews.com/berita/514851/nilai-ekspor-minyak-kelapa-naik-hingga-3633-di-tahun-2022