TECHNOLOGICAL DEVELOPMENTS AND ACHIEVEMENTS OF

THE COCONUT SECTOR IN INDONESIA.

A CASE MODEL ON AGRO-BASED INDUSTRIALIZATION*

A Basrah Enie**
Institute for Research and Development of Agro-based Industry (IRDABI)
Agency for Industrial and Trade Research and Development
Ministry of Industry and Trade
Bogor, Indonesia

ABSTRACT
Coconut is an important commodity in Indonesia, and it is used for industrial and
household purposes. The meat, water, husk, shell, and other parts of coconut are
processed into food and non food products.
Research and development activities on coconut processing are conducted on
product and process development, quality improvement, and environmental friendly
technology. The technology are developed for small and medium scale industries in the
processing of coconut meat (oil, coco milk, coco cream), coconut water (nata de coco,
beverages), coconut sap (molded and granulated coconut sugar, syrup), coconut husk
(fibres), and coconut shell (charcoal). The approach to the integrated coconut
processing industry will give the positive effects in increasing income of farmers,
creating job opportunities, supporting the regional development, and increasing export
earnings.

Keywords: Coconut processing, appropriate technology, coconut products, coconut oil,

nata de coco, charcoal, coconut palm sugar.

INTRODUCTION
The coconut palm is the most extensively grown and used nuts. Of all the palms,
coconut is of highest economic value. It is grown over the widest area and has possibly
the largest number of uses including in a wide variety of foods.
The coconut is utilized by housewife and restaurant for cooking purposes, by
farmer to make copra, and by the small and medium scale industry for production of oil
and processed products.
*) Paper presented at the XXXV COCOTECH Meeting. Denpasar, Bali, 13-17 July 1998.
**) Director, Institute for R&D of Agro-based Industry (IRDABI), Ministry of Industry and
Trade, Bogor, Indonesia. Email: abenie@indo.net.id

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 The coconut tree deserves its distinction as the “tree of life”. All of its
component, from its leaves down to its roots are economically useful to man. So, the
coconut tree could be used in supporting income earnings of farmers in coconut
producing regions.
According to the Bureau of Statistics, Indonesian coconut production in 1997 is
2.670 million metric tons. The production is slightly lower than the preceding year’s
crop, 2.761 million metric tons. The coconut is produced by small holder estates, large
Government-owned estates, and large private estates (6).
This paper describes efforts on the development and transfer of technology on
coconut processing in Indonesia.

COCONUT PROCESSING INDUSTRY IN INDONESIA

The coconut sector has contributed to the development of agro-based industries in
Indonesia. At the industrial level, the nuts are processed into various food and non-food
products. The coconut meat are processed into coconut oil, coconut cream, and
desiccated coconut; the shell are processed into charcoal and activated carbon; the husk
are processed into coir fibres; the sap are processed into coconut sugar and golden syrup;
and the water are processed into nata de coco and coconut beverages (7, 9, 11).
The small or cottage scale coconut processing industries tend to be labour intensive.
These industries use simple and manual equipment, and employ traditional methods of
processing. Industries in this category those are producing copra, crude coconut oil,
coconut sugar, vinegar and charcoal. The medium and large-scale industries are
producing refined coconut oil, desiccated coconut, and sterilized coconut milk.
The government give a special attention to the development of small and medium
scale industry. It is expected that these industries play an important role in improving
welfare of rural communities by providing more employment opportunities, poverty
alleviation, and also to promote export earning.
The technology developed for small and medium-scale industry should be appropriate
and environmental friendly.

Table 1. Coconut processing industries in Indonesia.

NO RAW MATERIAL INDUSTRY

1 Coconut Meat Copra, coconut oil, cooking oil, oil products/derivatives, coconut
milk, coconut cream, desiccated coconut, candied coconut meat,
skim milk beverage.
2 Coconut shell Charcoal, activated carbon, coconut shell powder, handicraft
3 Coconut husk Coir fibre products, coir dust products
4 Coconut water Nata de coco, beverages, coconut sauce (kecap air kelapa),
vinegar
5 Coconut palm sap Moulded coconut sugar, granulated coconut sugar, golden syrup,
vinegar, alcohol, beverages.
6 Coconut wood Furniture, handicrafts
7 Coconut leaves Handicrafts

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COCONUT PRODUCTS OF INDONESIA

A. COPRA

Copra making is among the oldest industries in the world. Copra is the
commercial name of dried coconut meat to be used for coconut oil production. Copra
contains from 57% to as much as 66% oil while meal recovery ranges from 32 to 35%
(1). Copra is produced traditionally by drying the coconut meat by sun drying,
smoking, or mechanical dryer. The mechanical dryer will produced a good quality of
copra.
Indonesian exports of copra reached 156 tons (1995) with the value of US$
42,000 and in 1997 exports volume were sharply increased to 22,681 tons (6).

B. COCONUT OIL

Coconut oil is the important product derived from coconut palm. The oil is
obtained by the pressing of copra or by direct processing of wet kernel. Copra oil
should be refined before consumption, and the wet process or fry-dry oil could be
used directly for frying and other purposes.
Coconut oil is consumed primarily as an edible oil, but it has special
characteristics that give it access to an exclusive market. It has distinctive flavour
characteristics and keeping qualities, which make it particularly desirable for certain
edible products, like cookies, pastries and non-dairy creams.
In Indonesia there are several methods for the preparation of coconut oil, i.e. the
copra process, kelentik process, fermentation process, and fry-dry or HOID process.
Copra oil is obtained by pressing the copra in screw presses or expellers. The
expressed crude oil is filtered while the residue or copra cake is broken down into
small pieces or powder and packed in sacks or bags. Crude copra oil must be refined
to remove free fatty acids, odours, flavours, and colours. The need for refining is
increased by the presence of microorganisms on the copra, as well as high moisture
content.
Kelentik oil is a popular cooking oil made by boiling coconut milk, and it is
usually prepared and used by households in the villages. The oil is usually prepared
by cottage industry which is employed 3-5 people. Upon completion of the process,
two type of products may be obtained, i.e. oil and oil residue (curd or gelendo), which
presumably consists of protein, carbohydrate and minerals. After being pressed, the
curd may contain 7.5% oil when the moisture content is 13.8% (22).
The extraction of coconut oil by fermentation method were practiced by cottage
industry. The major disadvantages of the method is poor quality oil and the residue
were inedible due to the growth of wild microorganisms. Improved technique for
extraction of coconut oil by fermentation process has been investigated. The coconut
milk was left for 30 minutes at room temperature, and then the cream was separated
from the skim milk. The cream was mixed with 20% freshly prepared starter of
baker’s yeast, and incubated for 24 hours. The oil recovered has a pleasant flavour
(8).

3
 The fry dry or hot oil immersion drying (HOID) process is a method of coconut
oil extraction that involves drying the disintegrated coconut kernel by immersing it in
hot coconut oil and then expelling the oil from the cooked pieces. It is indigenous to
parts of Indonesia (West Sumatra, North Sumatra and North Sulawesi). It is practised
all over the country, especially in medium- and large-scale operations. The
immersion of disintegrated coconut kernel in hot oil dries the kernel and imparts a
distinctive smell and flavour to the product. This flavour of HOID oil is preferred by
sections of the market in Indonesia.

C. COCONUT MEAT

Coconut meat is the most important part of coconut. For centuries the meat enters
into the diet of the people in the form of coconut milk or cream. As mentioned
above, the meat is traditionally used for copra making and oil production. The
coconut meat is also used for the production of desiccated coconut, coconut snacks,
candied coconut meat, and beverages.
In 1996 the major importing countries for Indonesian desiccated coconut are the
Netherlands, France, UK, Singapore, Taiwan, and Belgium. Exports of desiccated
coconut reached a total of 24,150 metric tons (23).

D. COCONUT HUSK

Coir is the name given to the fibrous material that constitutes the thick mesocarp
(middle layer) of the coconut fruit. The long fibres or coir are extracted from the
coconut husk. For the production of “white” coir the husk segments are softened by
retting for as long as nine months (microbiologically breakdown of the surrounding
pith); for the bristle and mattress fibre by soaking in water for a weeks, or days if the
husks have been crushed beforehand.
Coir extracted from green immature husk termed “white/retted fibre”, which is
finer and a light colour than that obtained from mature nuts. It is used in the
preparation of yarn, cordage and a wide range of floor furnishing materials such as
foot mats, mattings, rugs, carpets and specialty articles such as filters. The mature
nuts yield “brown fibre” and this is normally obtained as a by-product of copra or
desiccated coconut production. It is used in the manufacture of brushes, curdle coir,
for filling upholstery, and various types of rubberized coir products which serve as
bed mattress, cushioning blocks, air filters, and packaging materials. Indonesia is by
far the producer of “brown” fibre.
Exports of Indonesia in 1996 for coconut fibre and fibre products were 866 metric
tons (23).

E. COCONUT SHELL

The coconut shell in Indonesia is utilized as a fuel for domestic use and for copra
drying kilns. The shell is also industrially used for coconut shell charcoal making and
coconut shell flour.

4
 The shell is converted into coconut shell charcoal by combustion in a limited
supply of air. The demand for coconut shell charcoal is increasing as it is an
excellent raw material for the production of activated carbon. Approximately 24.000
whole shells will make 1 metric ton of charcoal, and around 3 metric tons of charcoal
will produce 1 metric ton of activated carbon.
Coconut shell flour is prepared by grinding cleaned coconut shell into a fine
powder, and grading according to particle size. It is mainly used as a filler in place of
wood flour in the manufacture of mosquito repellents, floor coverings and as a mild
abrasive in the cleaning of piston engines.
Indonesian export of coconut shell products in 1996 were made up of 15,855
metric tons of shell charcoal and 12,325 metric tons of activated carbon (23).

F. COCONUT PALM SAP

Several palms, the coconut (Cocos), sugar palm (Arenga), palmyra (Borasus), and
nypa palm (Nipa), are tapped for their remarkably rich and copious sap. In Indonesia
the fresh sap are traditionally used for drinking purposes and also used for the
production of palm sugar and vinegar.
Coconut is dominating the palm sugar production, followed by sugar palm,
palmyra, and nipa palm. Coconut palm sap is processed by cottage industry in the
village where the coconut is grown. The products are the moulded brown sugar and
the granulated brown sugar.
In 1996 exports of Indonesian coconut sugars were 179 tons with the value of
US$138.000. The coconut sugars are exported to Singapore, Malaysia, Taiwan,
Canada, Netherlands and other countries (3).

G. COCONUT WATER

Coconut water has been known to be an excellent microbial medium because of

its rich supply for essential nutrients. In the Philippines, coconut water is used for the
production of nata de coco, and the production is started in the later part of 1940’s
(18). Industrial utilization of coconut water into nata de coco in Indonesia was started
in 1970’s.
At present Indonesia is one of the major producers and exporters of nata de coco.
Nata de coco is produced by small and medium scale industries in Java, Sumatera
(Lampung), North Sumatera, Kalimantan, and Sulawesi. Nata is exported to the
Singapore, Taiwan, and Japan in the form of raw sheets and processed nata in can,
plastic pouches, and cups.

H. COCONUT WOOD

The stem of the coconut is a valuable material for the production of timber and
other wood articles. One important property of coconut wood is the facility with
which it could be machined and fabricated to various forms. Added to this, it has a
good shaping quality particularly along the grain (1). Coconut wood can be
successfully used for floors, frames, furnitures, and handicrafts.

5
CASE MODELS ON AGRO-BASED INDUSTRIALIZATION OF
COCONUT.
Research activities on coconut products and process development has been conducted
at the R&D institutes in Indonesia, such as at the IRDABI Bogor, Coconut Research
Institute Manado, and universities (8, 9, 10, 11, 13, 14, 15, 17, 20) To get maximum
benefits from the R&D activities, the results should be transferred to the commercial
scale production, either by cooperation with the private sectors or with the government
institution. The experiences on transfer of technology from the laboratory to commercial
scale will be described below.

A. NATA DE COCO

The R&D on the utilization of coconut water into nata de coco is the first success
story of the IRDABI in developing the coconut product. Before 1970’s it was no
commercial value for the coconut water. The coconut water is waste material on
copra and coconut oil processing. The R&D on nata de coco was started in 1974 (15)
and the result was presented at the 2nd National Seminar on Food Technology which
was arranged by the Chemical Research Institute (now the IRDABI) in cooperation
with the Indonesian Association of Food Technologists (PATPI). The promotion of
technology was then continued through the brochures and leaflets, consultation, and
training of extension officers and entepreneurs from various provinces (9).
The research on the improvement of nata de coco fermentation has been
continued and the good quality of liquid starter has significantly shortened the process
from 12 to 8 days. The machinery and equipment is also developed for the
commercial scale of nata de coco production.
Starting in 1995 the IRDABI is conducted a research collaboration with the
NIMC (Japan) on industrial utilization of nata de coco. The nata can be processed to
high-strength sheet or be useful as fragment for reinforcing pulp papers. The
application into commercial scale production is still in progress.

6
 Cane Sugar

Coconut Water Filtering Boiling

Covered with Filling Cooling

Sheet of papaer (in plastic pans)

Fermentation - Glacial Acetic Acid

(room temp, 8-12 days) - (0.6-0.8%)
- Liquid Starter (10-15%)

Nata Sheet Cut into Cubes Dipping in Cold Water

(2-3 days)

Packaging Boil (10 min) Boil (2-3 times, to

(glass jar, can, remove sour taste)
plastic cup, pouches)

- Syrup
Sterilization Nata de Coco - Flavouring

Figure 1. Nata de coco production.

B. COCONUT PALM SUGAR

The coconut brown sugar is the second success story of the IRDABI on the R&D
and transfer of technology. The research was firstly conducted in 1982 through the
UNIDO project DP/INS/76/001. The initial activity are focused on the quality
improvement of moulded coconut brown sugar (19). The bench work was conducted
at the laboratory in Bogor and the result was transferred through 6 months out-posted
program at Desa Ngoran, Kecamatan Nglegok, Blitar District, East Java Province.
The production capacity of sugar producers involved were 4-6 kg per day, and total
producers were 425 units. After applying the improved technology, the selling price
of the product was increased 4 to 8 percent.
The promotion of technology was continued through the technical workshop on
brown sugar held in June 1993. The workshop was attended by participants from
regional institutes representing 8 provinces, and also officers of the Regional Offices
of the MOIT.

7
 The demand of palm sugar products was increased, especially from the European
countries, Australia, Middle East, Japan, and other Asian countries. Responding to
this request, the product diversification of palm sugar into granulated form was also
conducted by the IRDABI. The technology and hardware was developed and the
results was transferred to the moulded palm (arenga) sugar producers at Desa
Sindanglangka, Kecamatan Karangtengah, Cianjur, West Java Province. Fifty
percent of 60 palm sugar producers were producing granulated sugar. The price of
granulated sugar was nearly twice of the moulded ones. The technology was
transferred to the other regions in Java and other provinces.
The quality of granulated coconut sugar produced by small-scale industry is
varied from one to the others, especially in the moisture content. The IRDABI
developed a 200 kg capacity of mechanical dryer for drying the sugar, and the dryer
has been installed and operated at the centre for coconut sugar production in
Purwokerto, Central Java.
In 1985 the IRDABI received the UPAKARTI, government award for the
activities on development of small-scale industry. The activities covered the
development of nata de coco and coconut sugar industry.

Na-metabisulfite

Coconut Palm Sap Filtering Heating (Evaporation)

Packaging Moulding Stirring & Cooling

Moulded Coconut
Sugar

Figure 2. Moulded coconut sugar production.

8
 Coconut Palm Sap Filtering (I) Filtrate
(pH 6-7)

Cooling (10 min) Thick Liquid Boiling & Filtering (II)

Granulating
Few drops of Scum &
coconut oil tiny particles

Granulated Sugar Sieving Packaging

Figure 3. Granulated coconut sugar production.

C. WASTE HEAT TECHNOLOGY

Charcoal produced from coconut shell is traditionally made using the pit or drum
methods. This process will produce large volumes of noxious smoke and variable
quality of charcoal. To solve this problem, the Natural Resources Institute (NRI) has
developed a process called the coconut shell carbonization with waste heat recovery
unit (WHU) to eliminate the evolution of smoke evolved during the process. Heat
normally lost to the surroundings can be used for the provision of process heat in
association with the processing operations, such as for drying of copra or other
agricultural commodities, etc.
The technology has been transferred to Indonesia through the project
collaboration between the NRI and the Institute for R&D of Agro-based Industry
(IRDABI) entitled “Improving the Small-scale Extraction of Coconut Oil”. The
IRDABI project is a part of a wider program of work funded by Common Fund for
Commodities (CFC).
The WHU unit was installed in Rimau Island, Palembang, South Sumatera, at the
5000 ha coconut plantation owned by P.T. Sumatera Candi Kencana. The WHU is
coupled to a copra dryer system which uses trolleys. The system is capable to
produce approximately 0.9 tons of good quality charcoal and 3 tons of copra per day.
The WHU technology would bring greater benefits to the coconut community in
many regions. This new technology added advantages as an alternative source of
energy as well as minimizing environmental pollution which is increasingly become
important in Indonesia (4, 11)

9
 Limited air
gas
Energy:
Shell Carbonizer Furnace - drying
- heating
- sterilization

Charcoal

Figure 4. WHU process for charcoal making.

D. COCONUT OIL

As mentioned in previous section, the HOID or fry-dry is a method of coconut oil

production by immersion drying of disintegrated coconut kernel in hot oil and then
expelling the oil from the cooked pieces.
The oil produced is low in free fatty acids (FFA) and virtually free of poly-cyclic
aromatic hydrocarbons (PAH); and thus reduces the cost of refining the oil. Oil
produced from copra, because of its higher FFA and PAH content is consequently
more expensive to refine.
The improved HOID technology has been studied and implemented in Indonesia
through the research collaboration between the IRDABI and NRI funded by the CFC
Project FIGOOF/01. The work is based on the laboratory research work carried out
by the Centre de Cooperation Internationale en Recherche Agronomique pour le
Developpmente (CIRAD), Montpellier, France in 1994.
One small HOID factory was established in Pontianak, West Kalimantan in 1996
under the collaboration program between IRDABI and P.T. Era Sukses Mandiri. The
production capacity of factory is 2 tons of fresh kernel (equivalent to one ton copra)
per day (5).
The HOID technology develop the interest of private sector and government
institutions. Recently the IRDABI has signed the contract to supervise one private
sector in establishing one factory in Sumatera. At the present fiscal year, the MOIT
would also take action to transferred the HOID technology to 3-4 locations in
different provinces.

10
 Coconut Meat

Disintegrating

Disintegrated Coconut

Frying in Oil

Scooping Out Oil &

Draining
e

Fry Dry Oil Fried Coconut

After Draining

1st Screw Press

filtering

Coconut Oil Pressed Fried Coconut

2nd Screw Pressing

filtering

Coconut Oil Cake

Figure 5. Hot oil immersion drying process (5).

FUTURE DEVELOPMENT ON PROCESSING TECHNOLOGY

The maximum utilization of coconut can be obtained through the development of
small and medium scale coconut processing industry in coconut production centre. The
concept of integrated processing of coconut based on an optimal utilization of the
coconut crop in one particular area should be promoted. The integrated coconut
processing industry can be used to complement already existing copra, oil or fibre
processing, or to build up entirely new industry (2).

11
 According to the scale of production, products to be selected for an integrated
processing of coconut can be selected from the Table 2.

Table 2. Products to be selected for an integrated processing of coconut.

NO TYPE OF INDUSTRY SCALE OF INDUSTRY*

SMALL MEDIUM/LARGE
1 2 3 4 5
COCONUT MEAT

1 Copra
2 Klentik oil
3 Crude oil
4 Refined oil
5 Oil/fat products/derivatives
6 Preserved coconut milk
7 Coconut milk powder
8 Coconut protein
9 Desiccated coconut
10 Coconut-based yogurt
11 Coconut skim milk beverage

COCONUT WATER
1 Nata de coco
2 Coconut vinegar
3 Coco sauce (kecap air kelapa)
4 Beverages

COCONUT SAP
1 Moulded sugar
2 Granulated sugar
3 Vinegar
4 Golden syrup
5 Beverages

COCONUT SHELL:
1 Charcoal
2 Activated carbon

COCONUT HUSK:
1 Coir fibre
2 Coir dust

COCONUT STEM
1 Funitures
2 Handicraft

*) The scale of industry is ranked based on the total of capital investment.

12
 The program of integrated coconut processing industries will provide the
following benefits:
1. Increase the availability of basic products (food and energy for cooking and heating).
2. Provide energy resources and high value raw materials for other industrial sectors.
3. Increase export earnings by export of high value finished or semi-finished products.
4. Generate locally produced materials for import substitution.
5. Increase productive employment in urban and rural industrial centres (sentra
industri).
6. Increase the secondary employment and incomes among the rural population
7. Incomes generated for the rural people
8. The use of previously underutilized by-products or waste materials.

CONCLUSION
Coconut is an important commodity in Indonesia, and it is used for industrial and
household purposes. The meat, water, husk, shell, and other parts of coconut are
processed into food and non food products.
Research and development activities on coconut processing are conducted on
product and process development, quality improvement, and environmental friendly
technology. The technology has been developed for small and medium scale industries in
the processing of coconut meat, coconut water, coconut sap, coconut husk, and coconut
shell. The approach to the integrated coconut processing industry will give the positive
effects in increasing income of farmers, creating job opportunities, supporting the
regional development, and increasing export earnings.

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8. Enie, A.B. 1989. [Research on the use of active dry Baker’s yeast in the preparation
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