Indonesia will focus its policy on assistance to farmers with the aim of maximising revenues from highly specialized raw materials, including coconut oil and aloe Vera, which have higher margins than other raw materials such as palm oil, said the Minister of trade of the country.

Coconut oil, aloe Vera and bamboo are becoming more popular products, especially among buyers in Europe and America, said the Minister at a meeting of the countries-producers of coconuts in Jakarta. The government of Indonesia should preserve these products as the subject of luxury consumption, to maintain profit at a high level, bringing benefits to small farmers and to stimulate more investment in the production of coconuts.

Indonesia is the leading producer of palm oil in the world and the second largest exporter of coconuts after the Philippines. However, Indonesia should not let the coconuts go the same way as bulk commodities, such as palm oil whose makers don't get high margins.

You should not make this product available to the public - when there is a large volume, but low margin reported, the Minister making a reference to the wide gap between the cost of coconut and palm oil.

Emerging strategic raw materials, such as coconut and even bamboo, aloe Vera and other foods is undervalued. These products have much greater potential as products of prestige, to give much greater benefits to farmers than the mass of the products.

As of 2014, Indonesia had a total of 3.6 million hectares of coconut plantations, about one third of the area currently occupied by palm oil plantations.

Coconut oil is sold in the range of 1400$ per ton, the premium is more than$ 200 per ton, compared to palm oil and more than 700$ per ton and against palm oil, and soybean oil against and supported by the concerns associated with weather shortage.

Source: Thomson Reuters