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The objective of this research was to determine the effect of addition of natural papain enzyme on virgin coconut oil production and to characterise the physical quality of hand and body lotions made with virgin coconut oil. A natural papain enzyme was extracted to separate the virgin coconut oil from blondo and water, and the virgin coconut oil was then made into a hand and body lotion. The highest yield of virgin coconut oil (13.8±5.30%) was obtained with a 45% papain enzyme extract. The virgin coconut oil had an acid number of 0.135±0.50%, which fulfilled the SNI 7381:2008 standard for acid numbers. The peroxide number for the virgin coconut oil was 1.16±0.51 meq/kg and in accordance with the SNI 7382:2008 standard for peroxide numbers. The organoleptic test for hand and body lotion products prepared from the virgin coconut oil extracted with the papain enzyme was carried out with 32 respondents. The lotion colour had adequate acceptance by the respondents, who also viewed the lotion texture, homogeneity and humidity as satisfactory.

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