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Crisis Raw Material


Indonesia Faces Coconut Raw Material Crisis: A Serious Threat to Charcoal Briquette Industry

Indonesia is one of the world's largest coconut producers, but it is now facing a serious raw material crisis, particularly affecting the coconut shell charcoal industry. Based on insights from industry players and organizations such as HIPBAKI (Indonesian Coconut Charcoal Briquette Entrepreneurs Association), this crisis is not only caused by climate factors, but also by the uncontrolled export of raw coconut shells by farmers and local suppliers.

Main Causes of the Crisis

  1. Massive Export of Raw Coconut Shells
    Farmers and local traders in key regions like Sulawesi, Sumatra, and Kalimantan often prefer to export raw coconut shells directly to countries like China, India, and Vietnam due to higher prices and faster transactions. As a result, local charcoal factories are struggling to source enough raw materials.

  2. Lack of Export Regulation on Raw Materials
    The absence of strict government regulation on the export of raw materials has led to an imbalance between local supply and the demands of domestic processing industries.

  3. Climate Change and Land Conversion
    Irregular coconut harvests due to climate shifts and the reduction of coconut plantations—often replaced by palm oil or industrial zones—have worsened the supply chain disruption.

Direct Impact on Charcoal Briquette Manufacturers

This crisis has had a direct and systemic impact on coconut charcoal briquette manufacturers, a major export commodity from Indonesia used widely in shisha and BBQ markets across the Middle East, Europe, and Asia.

  • Up to 40% drop in production capacity due to material shortages

  • Coconut shell prices doubling, pushing up production costs

  • Factory layoffs (especially in small and medium enterprises) due to rising operational costs

  • Loss of trust from international buyers demanding consistency

  • Long-term risk of losing market dominance to other producing countries

HIPBAKI Call to Action

HIPBAKI urges the government to enforce strict controls on raw material exports and promote downstream processing within the country. Farmers should be supported to sell to domestic factories, increasing local economic value while stabilizing the supply chain.

Conclusion

The coconut raw material crisis is not just about availability—it threatens the sustainability of a vital national industry. Without proper export regulation and stronger support for farmers and producers, Indonesia risks losing its global position as a leading coconut charcoal briquette exporter. Government policy, consistent supply, and cross-sector collaboration are essential to overcome this ongoing challenge.

Charcoal Newsroom will continue reporting on this issue and providing updates from industry sources.

#CoconutCharcoal #CharcoalBriquettes #IndonesiaCharcoalIndustry #CharcoalCrisis #CoconutShellCharcoal


 

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