Indonesian Village Cooperative Exports Charcoal to China, Boosting Local Economy
Kendari, Southeast Sulawesi – A village cooperative in Southeast Sulawesi province has successfully exported 50 tonnes of coconut shell charcoal to China, marking a significant step in strengthening the local economy. The shipment, valued at Rp750 million (approximately US$46,300), was produced by the Awunio Cooperative in South Konawe.
Deputy Governor of Southeast Sulawesi, Hugua, stated that this inaugural export is a “crucial milestone in strengthening the people’s economy.” He further noted that Awunio Cooperative is the second village cooperative in Indonesia – and the first in eastern Indonesia – to independently conduct exports as reported by Antara News.
Growing Non-Mining Exports in Southeast Sulawesi
Hugua emphasized the importance of sustainable supply to maintain the trust of international buyers. He also highlighted the export as part of the growth of Southeast Sulawesi’s non-mining sector. Data indicates that the province’s non-mining exports reached Rp11.1 billion in 2024, increasing to Rp16.37 billion (nearly US$1 million) in 2025. This figure further rose to Rp35 billion during the January–February 2026 period.
“We recorded a significant increase, equivalent to 113.8 percent of the total 2025 figure within the first two months of this year,” Hugua said.
The Role of the KDMP Program
The success of the Awunio Cooperative is attributed to the efforts of villagers to optimize local resources for global markets. The cooperative’s achievement is linked to the government’s Red and White Village Cooperatives (KDMP) program, which aims to promote rural-based economic development, improve access to essential goods and services, and reduce reliance on informal lenders and middlemen.
Dadang, head of Awunio Cooperative, explained that the KDMP program has encouraged residents to expand their businesses according to Merdeka.com.
President Prabowo Subianto inaugurated approximately 80,000 village cooperatives nationwide in July 2025, accompanied by the development of supporting facilities such as management offices, pharmacies, retail outlets, warehouses, and clinics. As of February 18, 2026, construction had been completed for around 1,000 cooperatives, with the government aiming to increase this number to over 20,000 by mid-year and 80,000 by the complete of 2026 as reported by Merdeka.com.