Kendari, Southeast Sulawesi – A village cooperative in Southeast Sulawesi has achieved a significant milestone, exporting 50 tonnes of coconut shell charcoal to China, a shipment valued at Rp750 million (approximately US$46,300). The export, completed on February 21, 2026, marks a crucial step in bolstering the local economy and demonstrates the potential of Indonesia’s village-level enterprises in the global market. This success story highlights the growing emphasis on non-mining exports within the province and the broader national initiative to empower rural communities.
The shipment originated from the Awunio Cooperative in South Konawe, operating under the government’s Red and White Village Cooperatives (KDMP) program. According to Southeast Sulawesi Deputy Governor Hugua, Awunio is the second village cooperative in Indonesia – and the first in eastern Indonesia – to independently conduct exports. “This inaugural export marks a crucial milestone in strengthening the people’s economy,” Hugua stated, emphasizing the importance of sustainable supply chains to maintain trust with international buyers.
Expanding Non-Mining Exports in Southeast Sulawesi
The export of coconut shell charcoal represents a significant increase in Southeast Sulawesi’s non-mining sector. Data cited by Deputy Governor Hugua reveals a steady growth in these exports: Rp11.1 billion in 2024, rising to Rp16.37 billion (nearly US$1 million) in 2025. This trend continued into 2026, with exports reaching Rp35 billion during January and February alone – a 113.8 percent increase compared to the total figure for 2025. This growth underscores the province’s commitment to diversifying its economy beyond mining.
The success of the Awunio Cooperative is directly linked to the villagers’ efforts to maximize local resources for international trade. Awunio head Dadang attributed the achievement to the cooperative’s ability to optimize local resources for global markets. “The presence of the KDMP has encouraged residents to expand their businesses,” he said.
The Red and White Village Cooperatives Program
The KDMP program, a key initiative launched by President Prabowo Subianto, aims to foster rural economic development, improve access to essential goods and services, and reduce reliance on informal lending and intermediaries. In July 2025, President Prabowo inaugurated approximately 80,000 village cooperatives nationwide, accompanied by the development of supporting infrastructure including management offices, pharmacies, retail outlets, warehouses, and clinics.
As of February 18, 2026, Cooperatives Minister Ferry Juliantono reported that construction had been completed for around 1,000 of these cooperatives. The government has ambitious plans to increase this number to over 20,000 by mid-2026 and reach 80,000 by the end of the year, signaling a substantial investment in the cooperative sector.
The Awunio Cooperative’s export success is a tangible example of the program’s potential. The cooperative’s ability to navigate the complexities of international trade, from production to logistics, demonstrates the effectiveness of the KDMP in empowering local communities.
The export was carried out through Kendari New Port, located on Jalan Pelabuhan Container, Kelurahan Bungkutoko, Kecamatan Nambo, Kota Kendari, according to TribunnewsSultra.com.
This initiative not only provides economic benefits to the Awunio Cooperative and its members but also serves as a model for other village cooperatives across Indonesia, particularly in eastern regions, seeking to participate in global trade. The focus on sustainable supply is crucial, as Hugua emphasized, to ensure long-term relationships with international buyers and continued economic growth.
Looking ahead, the government plans to continue expanding the KDMP program and providing support to village cooperatives, aiming to create a more inclusive and resilient rural economy. The next key milestone will be the completion of facilities for an additional 19,000 cooperatives by mid-2026, as outlined by Minister Juliantono.
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