Indonesia's largest coconut production center on brink of collapse

Rizal Harahap, The Jakarta Post 31 Oct 09;

Coconut production in Indragiri Hilir regency, Riau, the country's biggest production center for the commodity, is on the brink of collapse as hundreds of hectares of plantation are being destroyed by either pests or erosion.

The Indragiri Hilir Horticulture Agency horticulture product processing and marketing division chief, Abdul Rosyid, said of the total 450 hectares of coconut plantations in the regency, up to 337.5 hectares were no longer productive.

"Unless we replant soon, coconut plantations in the regency will be history," he said Thursday, calling for an intervention from the central government to save the regency's status as the country's largest coconut production center.

Rosyid said the palm trees were destroyed by erosion caused by the nearby coast and insects such as beetles.

Coconut and its derivative products, including copra and coconut powder, according to Rosyid, have long been a commodity in the regency with strong demand.

Many coconut-based products have been exported to Germany and Malaysia.

Most of the plantations, Rosyid added, were local varieties.

He said there was only one company that managed a 100-hectare coconut plantation of hybrid variety.

He also said the damage caused by insects had threatened the livelihood of about 650 families, as the plantation damage had decreased the value of copra for the past month.

Copra products with an oil content of 75 percent, he said, were only worth Rp 1.4 million per ton. Previously they were worth Rp 2.5 million per ton.

"We fear people will be reluctant to maintain their coconut plantations."

He added the regional administration had tried to reduce the damage and save the remaining plantations. It also built wave breakers by the coast.

"But the problem continues as most farmers lack the finances needed to replant their fields," Rosyid said.

He said the local administration had asked the banking sector to help fund the replanting effort, but it refused because it did not consider coconut a profitable commodity.

"The Indragiri Hilir administration is expecting the central government to do something about the problem and to include coconut in the national horticulture revitalization program, which includes palm oil, cacao and rubber," Rosyid said.

He added each region had its own horticulture facilities but Indragiri Hilir needed a coconut revitalization program to revive the damaged plantations.

"The central government will hopefully turn its attention to coconut farmers in Indragiri Hilir," he said.

Riau provincial horticulture agency chief M Yafiz said the proposal to include coconut in the national agriculture revitalization program had been submitted to the central government but no approval had been granted yet.

"We hope the central government will give us a 'thumbs up'," Yafiz said.

"Having a coconut revitalization program will ensure the banking sector provides loans to farmers.

"The government can then subsidize the commodity," he added.