We encourage new investment and expansion of essential oil downstream industries, including for Takasago Indonesia and Takasago International
Jakarta (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita offers fiscal incentive facilities through tax allowances for the downstream part of the essential oil or health therapeutic oil market to the board of directors of Takasago International Corporation.

The regulation is stipulated in Government Regulation Number 78 of 2019 that aims to attract investment in Indonesia.

"We encourage new investment and expansion of essential oil downstream industries, including for Takasago Indonesia and Takasago International," Kartasasmita stated in Japan, Tokyo, through an official statement on Wednesday.

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Takasago is the largest group of flavor and fragrance companies in Japan since 1920 and is operating in 28 countries, with 25 factories and 13 research centers.

The Industry Ministry has also included the downstreaming of the essential oil industry (IHMA) as a pioneer sector to receive super tax deductions.

The government also enforces the Indonesian National Standard (SNI) for health therapeutic oil products or essential oils as well as the National Essential Industry Work Competency Standard.

"We are also actively participating in exhibitions of the essential industry sector both at the domestic level and abroad to promote investment and build the image of the industry," the minister noted.

As is known, the essential oil industry is one of the national priorities in the development of the upstream agro industry sector.


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The essential oil industry sector must be strengthened in the downstream sector for raw material production as well as strengthening the intermediate sector to support the fulfillment of raw material needs of the essential processing industry.

The four main essential oil commodities that are a priority for the development of the national essential sector are patchouli oil, citronella oil, clove oil, and nutmeg oil.

President Director & CEO of Takasago International Corporation Satoshi Masumura noted that his side had a factory to produce flavors and fragrances in Cikarang, West Java, and Purwokerto, Central Java. The company also had garden facilities and amenities for the initial processing of essential oils.

The company's line of business is the manufacture and sale of flavors and fragrances, aroma ingredients, and fine chemicals.

"Takasago's strength is the ability to research and develop new product innovations," Masumura stated.

Takasago Indonesia is committed to allocating 10 percent of the investment value for the development of environment-friendly production methods and product engineering to reduce the consumption of energy resources.


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Translator: M Baqir I A, Resinta S
Editor: Fardah Assegaf
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