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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, about 1 minute.
Place rinsed rice, coconut milk, water, sugar, and salt in a medium saucepan; stir until sugar dissolves, about 1 minute.
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; serve.