JAKARTA - Cinnamon as a type of spice that is widely used to flavour cakes, mixtures of cigarettes and medicinal products is a potential commodity. But unfortunately, according to young entrepreneur Budi Susilo, not many are interested.
The shortage of Indonesian cinnamon supply, said Budi, is still imported from abroad, one of which is Vietnam. "Actually, we are still importing cinnamon from Vietnam, because it is still not enough to meet domestic demand", said Budi Susilo, a young entrepreneur engaged in buying and selling cinnamon recently.
Forestry Land
Currently, said Budi, there are 13,000 hectares of cinnamon plantations belonging to Inhutani which he has managed since 2017, empowering around 4,000 members of the local community. For this reason, he brought in machines worth IDR 100 billion more from China, to process cinnamon.
In the cinnamon business, he graduated from the London School of Economics, London. The United Kingdom, which is currently participating in a doctoral program at George Washington University, America, is cultivating Inhutani land in Kerinci Regency, Jambi Province.
All parts of the cinnamon tree are processed. Starting from wood, and skin to leaves. He markets it to the cigarette industry in Central Java, and some of it is exported. According to him, the margin from exports is quite large.
Wet Tropical Climate
Cinnamon grows well in areas with wet tropical climates. The wet tropical climate is spread throughout almost all parts of Indonesia.
Some types of cinnamon can grow at an altitude of up to 2,000 meters above sea level (m asl), but C burmanni will produce well if planted at an altitude of 500 - 1,500 m asl. Therefore cinnamon is very well developed in mountainous areas, such as Sumatra, Java, Sulawesi or Papua.
The potential for cinnamon in Indonesia is actually large, and the demand for it is also very large. But not many entrepreneurs are interested in doing cinnamon business because the margins are small.
"Fortunately, the cinnamon business is small, unlike in mining. But if the volume is large, the margins can be large too", said the young entrepreneur who started his business in the chilli business in Lampung.
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The enormous potential of cinnamon cannot be maximized, apart from a few interested entrepreneurs, people in some areas are not taking it seriously.
He has tried a similar business in West Java, but according to him, the local community is difficult to manage. He hopes that awareness will grow evenly between entrepreneurs and the public so that the enormous potential of cinnamon can be developed.
"Come on, let's grow cinnamon together. In Kerinci alone there are still hundreds of thousands of hectares of uncultivated land. If there are entrepreneurs who want to enter, please just get in touch with Inhutani and the community", said Budi without fear of business competition.
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