The National Government, in collaboration with Kokonas Indastri Koporesen (KIK), has initiated comprehensive measures to support the coconut industry through structured Price Support and Freight Subsidy policies.
KIK, under the leadership of Managing Director Alan Aku, has been instrumental in implementing these policies.
Aku emphasized the organization’s commitment to supporting white copra producers by providing essential resources such as dryer sets and processing start-up kits.
This initiative ensures high-quality processed products reach markets efficiently, bolstering the economic prospects of coconut growers.
KIK’s efforts extend to establishing and enhancing downstream processing facilities, particularly benefiting SMEs and MSMEs in coconut-growing regions.
The support encompasses new machinery, upgrades to existing equipment, extension of factory spaces, and covering freight costs for processing facilities.
This has resulted in the establishment of eight medium VCO processing facilities and 53 small processing facilities since 2023, significantly contributing to the production of high-value coconut products like virgin coconut oil, body care items, and coconut shell charcoal.
Aku also highlighted KIK’s focus on environmental sustainability, addressing issues like smoke pollution by promoting white copra production and integrating sustainable farming practices through the Coconut Based Farming Systems approach.
This method ensures the efficient use of land by combining coconut cultivation with other crops or livestock, considering factors like soil erosion and nutrient management.
The collaborative efforts with international partners for research and capacity building further reinforce KIK’s commitment to enhancing the coconut industry while minimizing environmental impact.