Indonesia is one of the world’s largest coconut producers. In 2000, coconut plantations covered an area of 3.76 million hectares, with an estimated total production of 14 billion coconuts, the majority (95%) of which came from smallholder plantations. Coconuts hold significant economic, socio-cultural value and function.

The utilization of coconuts generally focuses on by-products such as copra, oil, and coconut milk to meet household needs, while other by-products like coconut shells remain underutilized. The shell constitutes about 12% of the coconut’s weight. Therefore, with an average annual coconut production of 5.6 million tons, approximately 672,000 tons of shells are produced. The large-scale potential of coconut shell production has not been maximally utilized for value-added production activities.