The ministry’s inspector general, Mohammad Rum, said here on Wednesday that in 2024, the global market value of essential oil grew 10 percent compared to the year before. This growth is expected to continue as people become more interested in eco-friendly products.
Trends like green beauty and clean labels, and the demand for organic and traceable products, have prompted Indonesia to pursue strategic efforts to carve a place in the global supply chain, he added.
He said that Indonesia ranks eighth globally in essential oil exports, accounting for 4.12 percent of the total market value. However, he highlighted that most of the goods exported by the country are raw materials.
“Hence, downstreaming becomes urgently needed, so that so added value of this sector can (benefit) the nation and strengthen national industry (and) make it capable of competing (globally),” he explained.
Top Indonesian commodities such as patchouli and clove serve as basic materials in the global perfumery and wellness scene, he pointed out. According to him, they can be optimized further.
Other commodities that could boost exports are nutmeg oil, sandalwood, citronella, he said.
Indonesia has around three thousand distillation facilities, including in Aceh, West Sumatra, Central Sulawesi, Maluku, and Papua, he noted.
The total national essential oil production is capped at 26,398 tons annually, with 200 thousand people engaged in the industry. A large number of those workers are from micro, small, and medium enterprises (MSMEs) and small farmers.
“This shows that the essential oil industry is not only export-oriented, but also has a strong social aspect to it, as it empowers people in rural areas,” he said.
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Translator: Ahmad Muzdaffar Fauzan, Mecca Yumna
Editor: Aditya Eko Sigit Wicaksono
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