How Coconut Oil Is Creating New Livelihoods for Coastal Communities

In Raja Ampat’s Solol Village, residents are transforming abundant coconuts into natural coconut oil, opening new possibilities for the community.

Virgin Coconut Oil Storaging

Across Southeast Asia, the coconut is more than a tropical crop. In the Philippines, it is often called the “Tree of Life” for the many ways its fruit, husk, shell, leaves, and trunk can be used, reflecting the important role coconut has long played in the food, livelihoods, and everyday traditions of coastal communities across the region.

The scale of the coconut industry reflects its enduring importance across the region. In the Philippines, the industry generates an average of US$2 billion in export revenue annually. Yet the Philippine Coconut Authority has noted that farmers generally remain raw-material suppliers of dehusked nuts, with value-added processing into products such as virgin coconut oil, coconut sugar, and cosmetics offering opportunities to increase their income. This same opportunity is emerging in Indonesia, including the coastal areas of Raja Ampat, where abundant coconut trees in Solol Village were long viewed primarily as a household resource rather than a source of higher-value products and livelihoods.

In Solol Village, change began when coconuts were no longer seen merely as a cooking ingredient, but as a pathway toward a more sustainable local economy. This shift has progressed gradually through learning, mentorship, and the involvement of village youth.

The Origins of Coconut Cultivation, Nature, and the Life of the Solol Community

Solol Village, in West Salawati District, Raja Ampat Regency, sits along a well-preserved coast where coconuts grow around settlements, beaches, and mangroves. Most trees are inherited across generations, with families typically managing less than one hectare and 30–50 scattered trees.

Philipus Charles Fiataly, 39, a village official and chairman of the Church Youth Fellowship (PAM), is now active in processing VCO. Before learning about VCO, coconut use was limited. 

“In the past, we only made regular coconut oil. We grated it manually, squeezed it, and then cooked it. There was no thought about quality, let alone the market,” said Fiately.

Coconuts are usually harvested when they fall naturally. When there is an urgent need for income, they are sold to Sorong City for Rp1,000–Rp3,000 per fruit, depending on season, weather, and sea transport. The community’s nomadic gardening culture, where land is often left without replanting after harvest, also raises concerns about long-term sustainability.

This became the starting point for a new approach where Philip and his friends in Solol joined the Merdesa Village School (SEKAM), created by Bentara Papua, which supports village youth in natural resource management. Following a 2019 potential assessment across five Raja Ampat villages, Bentara Papua established the Solol Bentara Papua Station as a learning hub for local residents who want to learn to preserve coconuts as a multi-generational heritage so it can be processed to create added value for the community.

Grison Krey, the Solol Station Coordinator for Bentara Papua said “We start with what is already there. The coconuts are already present; it is just a matter of how to process them so they have added value and quality acceptable to the market.” 

Through the mentorship, youth learned VCO production, including processing trials and developing SOPs. Today, groups produce VCO using 10–30 coconuts per cycle through grating, squeezing, fermentation, and filtering. The process takes about 12 hours, with medium-mature coconuts selected for aroma and clarity.

“Since Bentara Papua has been here, that is when we learned about VCO. From knowing nothing at all to understanding and being able to make it ourselves, we were also involved in the experimentation process and creating SOPs for VCO production,” Fiately said. “If the coconut is too old, the smell is stronger. We do not use that for VCO. We truly try to maintain quality through traditional techniques so the quality remains clear for our customers.”

Restorative Economic Impact: Income, Markets, and Sustainability

Since VCO processing began, coconuts in Solol are no longer valued only as raw fruit. VCO sells for around Rp40,000 per 100 ml and Rp100,000 per 250 ml, while regular coconut oil sells for Rp25,000–Rp30,000 per bottle. Monthly production averages 20 bottles using about 40 coconuts.

Products are marketed through Koperasi Bekal, Bentara Papua’s cooperative serving three production stations, and through MSME exhibitions, donor visits, and resorts in Raja Ampat. Resorts approached include Papua Diving, Resort Mama Engge, Resort Waiwo Dive, and Resort Vogelkopf, while international visitors from America, Norway, Brazil, Germany, and Japan have purchased VCO.

Logistics remain a challenge for the island community, with weather and heavy rain affecting deliveries. Krey said, “There was a diving resort that once took all the stock. They asked the youth for a routine monthly supply, but the obstacle is logistics, including weather. However, we ensure that production remains according to the community’s capacity without sacrificing the quality of the SEKAM youth’s products.”

The impact also extends beyond VCO. Coconut shells are turned into decorative lamps and orchid vases, while husks are used for smoking fish. VCO dregs are being explored for animal feed and briquettes.

“These coconuts are a legacy from our parents. We guard them, we plant them again, and we process them slowly,” Fiately said.

In Solol, the restorative economy is taking shape through practical production, new markets, resource reuse, and a commitment to protect the coconut heritage passed down through generations.