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Chinese investors fueling Indonesia's coconut boom

Trading partner's rising demand helps island country unlock value of key crop

By Leonardus Jegho in Jakarta For China Daily | China Daily | Updated: 2026-01-03 10:39
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So many in the South Asian nation owe their education to this round fruit

Irfan Abd Rahim feels forever indebted to his father for tirelessly climbing up coconut palm trees, picking the fruit, and then selling the coconuts and dried coconut meat, copra, to traders in South Halmahera in North Maluku Province many years ago.

The traders then sold those to other traders who processed them into cooking oil and powder before selling them at local markets or shipping them to other places including the then-faraway Java Island.

"For me, talking about coconuts means talking about my academic degree," said the 42-year-old native of North Halmahera, who holds a bachelor's degree in law and is now the editor-in-chief of a media outlet based in the City of Ternate in North Maluku Province. Abd Rahim's two siblings also graduated from college, thanks to their father's hard work.

Abd Rahim hopes there will be enough vessels in the future to transport coconuts from smaller islands of Indonesia to coconut processing centers in North Halmahera. Coconuts are the most dependable economic commodity in the region.

President Prabowo Subianto, who became president last October, and Vice-President Gibran Rakabuming Raka have launched a flagship downstream program for minerals, agriculture and marine products.

The government has also introduced a program to open free elementary and secondary schools for children from the poorest families. Students at the so-called "Sekolah Rakyat", or People's Schools, will learn practical skills so they can find jobs for themselves after graduation.

Designating Sekolah Rakyat as "education downstreaming", the president stresses that education is the key determining factor for the nation's future.

Leo Longa, a coconut farmer in Sikka, appreciates the local government's initiative to export coconuts. As he owns 70 coconut trees on his plot of land, Longa said he was able to pay for the education of his three children. In fact, two of them have already graduated from college. His eldest son now helps him manage his coconut business. East Nusa Tenggara Province, where he comes from, is one of Indonesia's 10 poorest regions.

Leonardus Jegho is a freelance journalist for China Daily.

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