Hope from Coconut Sector: Emerging of Young Coconut Entrepreneurs in Indonesia

Indonesia managed to change its economy from agriculture based to an industrial and service economy. Gross domestic product grew more than 100 times within four decades from USD7.5 bln in 1968 to USD888.5 bln in 2014, nevertheless agriculture share to the GDP decrease significantly from 49% for the same period in 1968 to only 10.26% in 2014. As structure of the economy has change so as with labor force. According to Indonesia Central Bureau of Statistic proportion of agricultural workers has consistency dropped from nearly 60 percent in 1988 to 38.91 percent in 2010. Labor force swift from primary agriculture to secondary sector such as industry, construction, trading, transportation, finance and service.

Decreasing in number unfortunately comes with aging of farmers. Number of young farmer or those who under 35 getting less. Indeed it is a global concern, in UK is has been reported that the percentage of farmers under 35 has fallen from 16% in 1990 to 2.8% in 2011. Indonesia is a bit better of 12% but have far larger population to feed means that the country need to boost its food production.

The younger are reluctant to take agriculture for their career. For the young image of farmers are poor, often barely sustain them self and work with dirt. Most of the young prefer to work on industrial or service sector. The young educated even if they originally from rural are prefer to stay in the city for an office job. Concern over this issue Indonesia Ministry of Agriculture Amran Sulaiman who has agriculture education and business background express that his office will develop and promote program to encourage the young to return to agriculture. The program aim to create awareness among the young generation that farmer is a noble job and has same opportunity for success. Farmer are the noble who work to feed people in big modern city which without will collapse. Quoting Brenda Schoepp a Canadian prominent writer, agriculture and environmental activist 'once in our life we need a doctor, a lawyer, a policeman and perhaps a preacher, but every day, three times a day we need farmer'. 

In coconut sectors fortunately is not the case especially in the past few years. As many already understand that coconut business is been established in Indonesia for a long period of time dated back in the colonial era. Coconut industry has contributed to the countrys' development in early independence. It is also benefit some of the prominent businessmen such as  Ciputra, Peter Sondakh of Rajawali Group, Eka Tjipta Wijaya of Sinar Mas and Mochtar Riady of Lippo. These magnates linked to coconut in many ways from being raised in coconut producing areas, inherited copra business from their father or pioneering their venture with copra before move to and prosper in another industry such manufacture, property, mining, media etc.

The increased interest and number of the young to work on coconut sector for example can be seen from coconut shell charcoal business. Such increase is confirmed by Bambang Warih Kusuma owner of internationally recognized COCOCHA brand barbecue briquette. According to Bambang, the pioneer of the briquette business in the country, the number of charcoal related entrepreneurs are increase significantly estimated by more than 64 percent in the last 3 years which is half of them young ones.

Prominent young entrepreneurs emerge all over the country and some covered by media. They worked for different coconut products. Toil themselves on coconut shell charcoal related business such as run a shell burning kilns, trading and produce briquette for barbecue. Some are also interest and venturing on a controlled, clean and air-conditioned environment of food industry such as desiccated coconut and virgin coconut oil. Another prefer to work with farmers producing coconut sugar. Their motivation are varied from the basic reason of fighting for better economy. Express and extend their business capacity, continuing what they already learn at the university or college, social motivation to help farmers or continue an inherited business from their parents.

Among them are Helmy Affandi (28) a Surabaya based briquette business run his venture through PT. Empat Sekawan a company he set with Christopher Imantaka and Johan Hermawan his university colleagues. He was still a student at Ciputra University when they start the business. Helmy who was elected president director of the company initially work on coconut fibre. They inspired by Mr. Ciputra a well respected businessman in the country and founder of the university. Ciputra always pronounce a businessman are those who can turn waste to gold. Coconut fibre will be exactly fit into the phrase. The fiber are waste as most of the husk, source of fibre, are burnt. Processing the husk onto fibre and exporting it is the process of creating gold. Helmy and his friends studied at Ciputra University which mission to educate and create young entrepreneurs. Now they expand their business to coconut charcoal business which was started as trader to supply activated carbon factory in China. After run for a while they met buyer for briquette. They then tried to produce coconut shell charcoal briquette. After running for 3 years with a simple start they producing 72 to 90 tons briquette a months with export to Russia, United States and Middle East. He quoted that two of his business on coconut make annual turnover USD1,650,000.

Helmy and his friend start as student but story of Haqqul Bashar are a bit different. He was working in a state own bank when aware business opportunity in coconut. On a weekend he went to Polewali a small coastal town 6 hours away from Makassar for survey. He met some suppliers there and could match them with a readily buyers he know in Makassar. From there he start the trading. Able to make a good first profit Haqqul then go back and forth from Makassar to Polewali. He depart to Polewali after office hour on Friday and return to Makassar Sunday evening to catch up Monday for his office work. Doing this for four months Haqqul decided focus on his business full time and resign from his job. Run the trading for a while decide to apply loan from the bank he use to work. Now he produce white copra as he can see double profit of buying coconuts processing it to white copra and still got the shell for charcoal. Haqqul produce 24 tons white copra a month and for this he employ 14 workers at factory. This friendly bachelor recorded an annual turnover USD310,000. After four years he plan to expand his business by open another factory in different province. I feel happy with what I am doing now, he conclude, apart of doing business I am helping the local by providing them job.

Social entrepreneurship was in her mind when Sandilla Tristiany (26) decided to visit a group of farmers producing brown coconut sugar in the city of Purbalingga West Java. Cindy, nickname of this active girl, get an astonishing finding, the farmers gain little from their meticulous and often dangerous labor. Cindy said that farmers had to climb twice a day several 10 to 15 meters high coconut trees to collect neera. The neera then cooked for several hours to make half solid brownish compound, coconut sugar. She described the work as dangerous because climbing incident happened. Climber often fell off from the tree and one incident occur in a year is almost common. Later she also understand that the sugar has lower quality so will not get better price in the market. She gather the farmers and agree to help them improve the quality and finding a better market. Her plan work program is supported by more farmers which later decide to form a cooperative with 340 member farmers. The cooperative then organize training for good processing practice. The quality slowly improved and find its way to be exported to Singapore. Few months ago through her help the cooperative get an organic certification from Control Union. Cindy passion to make a change in coconut sugar community also get attention from Jolkona a nonprofit organization in Seattle. Last May 2016 she get fellowship to attend three week training for young social entrepreneur in developing countries. She learn a lot from the training, knowledge that she hardly wait to share to her team. 

Mudji Tasrip (26) who still feel comfortable as coconut trader supplying several traditional markets in Jakarta, the capital of the country. He get his coconut supply from Painan and Lampung both in Sumatera then delivered by truck all the way to Jakarta. Average 11 trucks contained 9,000 mature coconuts transported in a month to his warehouse near Pasar Minggu one of the largest traditional market in Jakarta. He is an IT graduate and has work in a finance company before focus on the business that run by his father for before he was born thirty years ago. Recent hike of coconut price in Indonesia due to previous year drought assure Mudji to keep work on coconut business. He intend to work on simple processing with less investment such as coconut milk and copra to get added value. Once in a while he go to the source of the coconut to see the plantation and meet farmers or trader who supply them. Not only to get to know them but understand the situation of the coconut sectors. He believe that now the country need to boost its replanting program to replace senile tree.   

The list continue to Annas Ahmad (35) who produce and sell VCO under an established brand Vico Bagoes. His interest with the product created from a personal experience. His father dr. Zainal Gani is a medical doctor who live healthy life from three decades diabetic by consuming regularly virgin coconut oil. After several years run conventional marketing, Annas start to opt for a more efficient marketing through social media. This year he join an e-commerce network to sell his VCO. VicoBagoes exported to some developed countries but Annas plan to increase his domestic sales. The aim is to spread the healthy benefit of VCO within the country.

Another young business start-up is Abimanyu Lino (32) who open a desiccated processing business last year. He chose to set his factory in Tobelo of North Maluku which he see less develop than other place in western Indonesia. Graduate from a reputable university in Australia and coming from a middle class family in Jakarta not deter his passion on coconut sector. He was not comfortable enough to sit and work in an air-conditioned room as he did for several years before decide to enter coconut business. He then decided to quit and start to work on his plan. After visiting and doing business in some places in Sumatera Abimanyu decided to settle in Tobelo a small peace town in North Maluku which far from luxury he can enjoy in big city like Jakarta. Though he sells his product on domestic market he plan to upgrade his processing technology and aiming for export.

Coconut will keep attract and create new young entrepreneurs especially with the promising global trend for a healthy and organic food products. Indonesia as the largest coconut producer witnessing a dynamic coconut industry development. Nevertheless one serious problem in the sector is the need for national replanting program. More than half percent of the total plantation in Indonesia need to be replant. Keep the current approach of replanting it will take more than 90 years to complete the task. It is therefore new dynamic and technology savvy of the young needed to lead the action. As Minister of Agriculture hope that by involve in agriculture business the young can boost the agricultural development. Their power can re-energize the sector by develop agro economy and improve the livelihood of farmers. Economy is the incentive as strong as or as much as in IT or finance sector and coconut sector most likely to provide it.