T

he owners of several coconut processing factories in Indragiri Hilir, Riau province, want the central government to curb coconut exports to secure supplies for domestic processors.

The request came amid reports that the factories faced difficulties in finding raw coconuts, Indragiri Hilir Industry and Trade Office head Pahrolrozy said.

Pahrolrozy said that exports from Indragiri Hilir to countries such as Malaysia, Thailand and China had increased significantly over the last several months.

“Agents of foreign companies have flocked to the regency because the price of coconuts here is relatively lower than in their respective countries,” he said in Pekanbaru on Monday.

Foreign sales agents routinely conduct business directly with local farmers, meaning that there are fewer coconuts for local buyers.

Pahrolrozy said that the foreign buyers offered the local farmers better prices for their coconuts.

“The price difference actually is only Rp 200 each [less than 3 US cents], but such a difference is important to the farmers — and there is no need for [farmers] to spend on transportation as the foreign buyers come directly to the plantation areas,” he said.

The arrival of foreign buyers was only superficially beneficial, he said, as the regional administration did not have to spend more money to promote Riau’s coconut producers while the farmers enjoyed better prices.

However unregulated direct transaction, according to Pahrolrozy, would lead to losses in the long run.

“Trade regulations on coconuts need to be realigned because the state gets nothing from such exports,” he said.

A coconut export curb would also protect the farmers, who suffer losses after their coconuts are resold at a substantially higher price overseas, Pahrolrozy said,

“The farmers do not realize that coconuts can be used overseas to produce other by-products from their shells. Here they sell them only on the basis of quantity,” he added.