Indonesia Plans Export Levy on Whole Coconuts to Secure Domestic Supply
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JAKARTA, investortrust.id — Indonesia will introduce an export levy on whole coconuts in a bid to safeguard domestic supply and manage rising exports, according to Trade Minister Budi Santoso.
The proposed levy aims to balance the volume of coconuts supplied to the domestic market against increasing overseas demand, Budi said during a press briefing in Jakarta on Sunday, May 18, 2025.
“This levy is meant to strike a balance between domestic needs and exports,” he stated.
The government is planning to use the export levy as a policy tool after domestic supplies of whole coconuts, also known as unprocessed or raw coconuts, became strained due to large volumes being shipped abroad.
Budi said discussions with industry players have already taken place and there is consensus to move forward. The levy regulation will be formalized under a Ministry of Finance decree, expected soon.
“Hopefully, the finance ministry will issue the regulation quickly. I believe all parties have already agreed,” he added.
The Ministry of Trade's Directorate General of National Export Development (PEN) had previously confirmed that the export duty plan was still under internal review. According to Director General Fajarini Puntodewi, the measure must take into account both upstream and downstream interests.
“The policy will protect the domestic market while also supporting our export objectives,” Fajarini said.
Trade officials acknowledge that exporters are more inclined to sell whole coconuts abroad due to better prices, which has contributed to local shortages. This export-first preference is what the new levy intends to correct.