The Shocking Rise Of Coconut Price in Indonesia

This morning, I planned to buy coconut milk but was shocked to see its price had nearly doubled. The sudden increase, almost 100%, made me reconsider my purchase and wonder about the reason behind it.
The usual price of a coconut is 8,000 IDR, but today it’s 15,000 IDR. The coconut seller used to sell coconut milk for 10,000 IDR, but now it has skyrocketed to 18,000 IDR.

Then, I searched for the reasons and found them. First, the high demand for coconuts during the Eid season. Second, the export of whole coconuts to countries like China, Thailand, and Malaysia.

Coconut is a key ingredient in Indonesian cuisine. During the Eid season, more people prepare dishes like opor, gulai, and rendang, all of which require a lot of coconut milk, increasing demand and contributing to the price surge.

There are packaged coconut milk products, but people prefer fresh coconut milk. If the price doesn’t decrease, it will greatly impact small restaurants that rely on it for traditional dishes. Many may struggle to keep up with rising costs.

In my opinion, this is an opportunity for farmers. However, the downside is that coconut trees take a long time to bear fruit, usually between four to five years. This waiting period can be a challenge for new coconut growers.
This discourages small farmers from growing coconuts. Most of the existing coconut trees were planted 10 to 30 years ago.

The new varieties that can bear fruit in three years are not popular among farmers because their quality differs from traditional coconuts. Many farmers prefer older varieties despite their longer growing period due to better yield and taste.

In the coming years, if the Indonesian government does not address this issue, there will be a coconut crisis.

It will be ironic because a country known as the home of coconuts will be suffering from a coconut deficit.
Therefore, the government should provide incentives to both small and large farmers who plant coconuts and establish fair regulations for exporters, industries, and local traders.