Gather the ingredients.

Place rice in a fine mesh strainer, and rinse with cold water, stirring rice using your fingers to remove excess starch, until water from rice runs clear.

Place rinsed rice, coconut milk, water, sugar, and salt in a medium saucepan; stir until sugar dissolves.

Bring mixture in saucepan to a boil over medium heat. Cover, reduce heat to low, and simmer, undisturbed, for 11 minutes.

Turn off heat; steam, covered, until rice is tender and liquid is absorbed, about 10 minutes.

Uncover and gently stir in coconut oil.