Coordinating Minister For SMEs Encourages Cooperatives To Downstream In The Development Of Various Kratom Products

Coordinating Minister for SMEs Teten Masduki (Photo: dock. VOI)

The Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM) emphasized the importance of downstreaming in developing various products from Kratom plants through cooperatives in Kalimantan.

Kratom is an endemic Southeast Asian plant whose leaves have long been used traditionally by the community as herbal plants and have a fairly large economic value.

Minister of Cooperatives and SMEs Teten Masduki said strategic steps to develop chromatic products had been discussed at a cabinet meeting chaired by President Joko Widodo, because the plant was suitable for development as a resource to improve the economy of the people of Kalimantan.

Menkop UKM is optimistic that downstreaming of krotom products can be done, especially the Koprabuh Cooperative has conducted a fairly in-depth research.

The development of krotom products is also extensive because this plant can be used as raw material for the pharmaceutical industry, as well as food and beverages.

Teten said that the demand for the world market for crotoms is getting bigger. Based on data from the Ministry of Trade, the export value of krotoms has always experienced growth with a trend of 15.92 percent per year since 2019.

One of Indonesia's main export destination countries is the United States. In the January-May 2023 period, the export of crotoms to the US reached 4.86 million US dollars or 66.30 percent of Indonesia's total fossil exports.

Teten also reminded the public not to sell their raw materials, but to be processed into high-value products.

"This is actually downstream, supply chain, raw materials from farmers. Downstreaming requires technology, and it is not expensive. It can be used in the Joint Production House," said Teten quoting Antara.

In the future, Teten hopes that the krotom can become a product that has added value and more economic value, as well as become a superior product from Kalimantan.

However, Teten warned that the trade and investment ecosystem must be precise and well maintained.

Meanwhile, the CEO of Koprabuh Cooperative Yohanis Walean stated that the krotom product has entered the category of herbal and legal exports that have great potential to be developed, and the potential is even greater than palm oil.

According to him, the planting of krotoms is not complicated. The key must be close to water sources, watersheds, swamps, and lake edges.

"Even though it was flooded for three months, the atomic tree continued to grow defensively," said Yohanis.