Contributing 4.2 Percent To Global Market, Indonesian Atsiri Oil Export Reaches IDR 4.21 Billion

JAKARTA - The Ministry of Industry (Kemenperin) encourages the development of the atsiri oil industry which has great potential in Indonesia. This is because of the 97 types of atsiri plants known in the world, around 40 species thrive in the country.

Inspector General of the Ministry of Industry M. Rum said, there are at least 25 types of atsiri plants that have been commercially cultivated, such as nylam, fragrant lemongrass, cloves, nutmegs to memory.

"With the support of agroclimat conditions and strong cultural heritage, we have a solid foundation to build a highly competitive atsiri industry," he said as quoted from his official statement, Thursday, July 10.

Rum explained that the export value of Indonesian atsiri oil reached 259.54 million US dollars or around Rp4.21 billion throughout 2024. Dark oil is the main commodity that contributes around 54 percent or worth 141.32 million US dollars. Other atsiri products that also support exports include cloves, nutmeg, sandalwood and fragrant products.

Globally, Indonesia is ranked 8th in the world's atsiri oil exporters with a contribution of 4.12 percent to the global market. However, most of the products exported are still raw raw materials.

"Therefore, the importance of strengthening downstreaming is a key strategy to increase the added value and competitiveness of domestic industries," he said.

Meanwhile, Acting Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, said that the current global trend shows an increase in demand for natural and sustainable materials-based products.

According to him, the natural cosmetics industry, aromatherapy, food, and health and wellness are potential markets that continue to grow, with global market values increasing by 10 percent throughout 2024.

"Commodities such as nilam and cloves from Indonesia have become an important part of the world's perfume and healthy lifestyle industry," he said.