China Commits $100 Million to Coconut Downstream Project in Indonesia
Main Takeaways
|
JAKARTA — A leading Chinese company has pledged to invest $100 million in a coconut processing facility in Indonesia, marking a strategic expansion of Beijing’s interest in the country’s agriculture and downstream sectors.
The plan was announced by Minister of Investment and Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani on Tuesday, July 29, 2025. He said Chinese investor appetite remains strong across various sectors, with coconut processing becoming a new area of focus.
“Investor appetite from China is still high,” Rosan said in Jakarta. “They are not just entering mineral processing, but also coconut. I’ve spoken with them, and groundbreaking has already begun.”
According to Rosan, the move aligns with the government’s priority to boost domestic value-added industries through downstreaming. He noted that Indonesian coconut exports to China have traditionally been in raw form, offering limited economic benefit. The new facility will instead process coconuts domestically, raising their export value.
The Chinese firm involved is described as the world’s top coconut processor. Rosan confirmed an initial capital commitment of $100 million, with plans to expand operations across multiple Indonesian regions.
“For a long time, we’ve exported coconuts very cheaply. But now, with local processing, we’re creating a true downstream industry,” Rosan said.
Rosan, who also serves as CEO of Indonesia’s sovereign wealth fund Danantara, emphasized that this project illustrates a broader shift in Indonesia’s industrial policy. The country is now extending its downstreaming push beyond mining and palm oil into other high-potential plantation commodities.
“We’re entering the downstreaming of plantations—not just palm oil, but also other sectors where we have strong potential,” he said.
Analyze global investments and emerging industries with precision using InvestingPro — Investortrust readers enjoy exclusive discounts. Click here to access your offer.