Minister Of Trade Budi Calls Downstreaming The Key To Making West Sumatra Gambir Global

The Indonesian Minister of Trade (Mendag) Budi Santoso released the export of 27 tons of gambir from West Sumatra with India's destination country in Padang City. (Photo: ANTARA)

JAKARTA - The Indonesian Minister of Trade (Mendag) Budi Santoso said downstreaming was the main key so that the uncaria gambir (genus) from West Sumatra Province (West Sumatra) could play a major role in the global market.

"To globalize gambir such as ginseng from Korea, there is only one way, namely downstreaming," Budi said as quoted by ANTARA, Tuesday, November 18.

The Minister of Trade explained that plants named Latin genus uncaria which grow a lot in Limapuluh Kota and Pesisir Selatan Regencies have great potential if downstreaming is carried out.

So far, Indonesia, especially West Sumatra Province, is still dependent on exports in the form of extract with India's main destination country.

Meanwhile, in India, the extract of gambir has been processed again into various kinds of derivative products, including textile dyes, medicines and beauty products.

Therefore, the Minister of Trade urged the West Sumatra Provincial Government together with the Regencies of Limapuluh Kota and Pesisir Selatan Regency to direct downstreaming so that the gambir would provide more economic benefits, especially for farmers.

According to him, if downstreaming of gambir with various derivative products can be done, the government, especially the Ministry of Trade, will help open or find export market opportunities, one of which is through trade agreements with other countries.

On that occasion, the Trade Minister said that this year Indonesia had just completed the European-Indonesian Union Trade Agreement or IEU-CEPA. This agreement is projected to be signed in January 2026.

Selain itu, Indonesia juga sudah menandatangani perjanjian dagang dengan Kanada dan perjanjian dagang antara Indonesia dan negara-negara kawasan Eurasia di akhir 2025.

Dia menjelaskan, perjanjian dagang dengan banyak negara di dunia ditujukan agar produk-produk asal Indonesia gampang masuk.

Sebab, dalam klausul perjanjian itu akan menghilangkan hambatan dagang termasuk soal tarif.

"Tarif dan nontarif itu dibicarakan sehingga akses produk kita gampang masuk ke banyak negara," ujar dia.

In addition, Indonesia has also signed a trade agreement with Canada and a trade agreement between Indonesia and the countries of the Eurasian region at the end of 2025.

He explained that trade agreements with many countries in the world are intended so that products from Indonesia are easy to enter.

This is because the clause of the agreement will eliminate trade barriers, including the matter of tariffs.

"The rates and non-tariffs are discussed so that access to our products is easy to enter many countries," he said.