The History of Coconut Shell Charcoal Production in Indonesia Indonesia is the world’s largest producer of coconut, and it is no surprise that coconut shell charcoal (CSC) production has been thriving in the country for centuries. Coconut shells have long been used as a source of fuel for cooking and heating, while their charcoal is used in various industries, such as cosmetics, food, and medicine. CSC production in Indonesia can be traced back to the time when locals noticed that coconut shells could be used for fuel.