Indonesian Copra And Efforts To Increase Competitiveness

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ICECRD NEWS – Indonesia is an agricultural country that requires special attention to process its resources, especially in the agricultural sector so that it can be strong and resilient in facing global competition. The sector that plays an important role in Indonesia’s economic growth is the plantation sector. The plantation in question is coconut, coconut is a commodity that has an important selling value for farmers in Indonesia. Data for 2019 shows that Indonesia has a coconut area of ​​3,500,726 (ha) and produces 2,992,190 (tons).

Based on these data, Indonesia has great potential in the coconut export industry. One of the coconut derivative products that have an important function in economic growth and increase Indonesia’s foreign exchange is copra. According to Woodroof (1970:43), copra is the name for the dried coconut flesh. After drying, copra can be produced and then processed into coconut oil. The residue from the processing of coconut oil is called copra meal which is used as animal feed. Copra production requires various steps from harvesting to marketing the product.

Decreased Production and Rejuvenation

People’s coconut production at this time tends to decline, which is below 6 tons/ha, which means that it is necessary to take fast and appropriate steps to increase production again. This effort can be done through the rejuvenation of people’s coconut gardens to increase coconut production which is low due to many old plants and the authority of rejuvenation is the task of the government.

The area of ​​coconut plantations in Indonesia currently reaches 3.5 hectares, of which 97% is dominated by smallholder plantations and the coconuts owned by these farmers are generally old and post-harvest handling/processing is very simple. The rejuvenation of coconut plantations has not been done much due to budget constraints and the availability of new superior varieties (VUB?), so that the impact is a decline in coconut production. In addition, unlike other commodities such as rubber or coconut, there is no guarantee for coconut commodities to be maximally absorbed. In fact, coconut is an agricultural commodity that has high economic value and added value.

Another worrying factor is that there are still a lot of coconuts in round shape being exported, especially from Riau Province. Therefore, it is hoped that the integrated coconut industry can be built soon. To address this, the Ministry of Agriculture through the Directorate General of Plantation and Balitbangtan/Plantation Research and Development Center (Balit Palma) is currently doing rejuvenation, especially in deep coconut plantations, or coconuts that bear fruit at an old age of 6-8 years. Rejuvenation is carried out in 19 provinces in Indonesia.

The Ministry of Agriculture also noted that the area of ​​damaged coconut land reached 500 thousand hectares, for that rejuvenation needs to be done gradually. In addition, rejuvenation is also carried out through the Plantation Superior Seed (BUN) 500 program. Through this program, the provision of high-quality coconut seeds reaches 132,000 hectares, the number of trees being rejuvenated per hectare reaches 120 trees or 120 seeds. The cost of rejuvenation includes the cost of seeds at Rp. 20 thousand per seed with the cost of fertilizers and pesticides reaching Rp. 30 million per hectare.

National Coconut Strengths, Weaknesses, Opportunities and Threats

Based on internal and external analysis of the copra industry, Indonesia has four important factors as the basis for government thinking and policies in the management and development of coconut at present and in the future. Some things that must be observed are aspects of strengths, weaknesses, opportunities and threats.

Power, (1) have an international port International port is a door for international trade there are several international ports located in Indonesia. International ports are able to make the delivery process of copra production able to reduce shipping costs incurred by producers. So that this position can be used as a strength in copra export activities, and (2) has a lot of workers The coconut processing industry, especially copra requires a lot of workers from harvesting to production. The large number of workers is the strength of the good copra industry in East Java , although the wages given depend on the results of the sale, this can be an advantage that plantation workers and production workers do not really demand large wages.

Weaknessthe availability of many coconuts in Indonesia does not make it an advantage because the majority of land ownership is owned by the people, so planting cannot be in one place or monoculture. So there are still many copra producers have to take coconuts from one place to another to be processed into copra. This is one of the weaknesses of the copra processing industry in Indonesia in the production and export of copra.

Opportunity , Copra demand. There is still a large demand for copra-based oil both abroad and domestically, which can be an opportunity in the copra-making industry.

Threat, (1) Coconut development, the threat from coconut development in Indonesia, the large number of coconut lands being converted into housing, oil palm plantations and other projects has resulted in reduced coconut plants and reduced productivity of coconut plants The reduction in land and productivity has disrupted copra production activities and disrupted copra export activities and this can threaten the copra industry, the average age of coconut plants is old and productivity is low, and (2) the copra industry. Farmers’ interest in processing coconuts into copra has decreased because the price of copra fluctuates and is erratic, which makes farmers sell more in the form of whole coconuts.

Efforts to Develop and Improve Competitiveness

Regarding the competitiveness of Indonesian copra and the strengths, weaknesses, opportunities and threats of existing copra. Previous research stated that in calculating the RCA shows that to calculate the competitiveness of Indonesia’s copra exports, the results show that Indonesia has competitiveness even though Indonesia’s competitiveness is still below Sri Lanka, but Indonesia is consistent with the amount of copra exported not much nor slightly different from Sri Lanka. Although in Indonesia the copra industry is not evenly distributed and large, but as a transit place for copra sent through existing ports, there are also national entrepreneurs who have copra businesses whose copra materials are taken from outside the island to be sent through existing ports. So, Indonesia still has the competitiveness of copra,

Furthermore, to maintain export competitiveness, it is necessary to understand the internal and external environmental factors. Indonesia has opportunities, including the high international market interest in processed coconut products, namely copra which is used for cooking oil and other oils. The number of requests is not proportional to the production produced by Indonesia. Both have threats, including the threat of shortage of raw materials, the large number of land conversions, and the decreasing interest of farmers to process coconut into copra.

Several steps that can be taken in order to strengthen the competitiveness of national copra are: (1) Creating a good distribution channel so that the people’s coconut harvest can be directly linked to the industry, especially copra. 2. Improving the quality and quality of copra, and (3) Increasing human resources by providing direction and assistance on processing technology, especially in the copra industry. (Anjas)

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