Preheat your oven to 350°F (175°C).
In a medium saucepan, combine the sugar and water over medium heat. Stir until the sugar dissolves, then stop stirring and let it boil until it turns a deep amber color, about 8-10 minutes.
Quickly pour the caramel into a 9-inch round cake pan, tilting the pan to coat the bottom evenly. Be careful as the caramel is very hot. Set aside to cool and harden.
In a blender, combine the sweetened condensed milk, coconut milk, eggs, vanilla extract, and salt. Blend until smooth and well combined.
Pour the coconut mixture over the hardened caramel in the cake pan.
Place the cake pan in a larger baking dish and fill the larger dish with hot water until it reaches halfway up the sides of the cake pan.
Bake for 50-60 minutes, or until the flan is set and a knife inserted in the center comes out clean.
Remove the flan from the water bath and let it cool to room temperature. Refrigerate for at least 4 hours or overnight.
To serve, run a knife around the edges of the flan, then invert it onto a serving plate. The caramel will flow over the top.