Indonesia’s Trade Minister, Budi Santoso, stated that no final decision has been made regarding the proposed Export Levy (PE) on whole coconuts, as the government is still awaiting guidance from the Coordinating Minister for Food Affairs, Zulkifli Hasan. He emphasized that the current rise in coconut prices is beneficial for farmers, marking one of the first times they are experiencing more favorable price levels. While international buyers are willing to pay higher rates, Budi highlighted the need to understand why domestic industries struggle to match those prices. He also dismissed rumors of coconut shortages, confirming that supplies across local markets remain sufficient.
The government previously considered a moratorium on whole-coconut exports, but the plan was replaced with discussions on implementing a PE mechanism to balance domestic supply. Although the levy has been discussed for six months, its implementation timeline remains unclear. Budi reiterated that PE could serve as a flexible tool to regulate export volumes without imposing an outright ban, helping retain more supply for domestic industries. Strong global demand has led many farmers and exporters to prioritize international markets, reducing local availability. Through PE, the government aims to strike a balance between export opportunities and national supply needs, ensuring more equitable distribution across markets.
