Indonesia's patchouli oil export performance in January-July 2021 increased 15.20% compared to the previous year, with the main export markets being the United States, India, France, Singapore, and China. Other potential export markets include Spain, the Netherlands, Germany and Switzerland.
The export opportunities were presented during the 2nd SME Sensitisation organised by Bappenas with support from the European Union-funded ARISE+ Indonesia on September 30, 2021. The 2nd edition of the webinar series focussed on patchouli oil.
More than 100 representatives from Bappenas, the Ministry of Trade, the Ministry of Industry, the Ministry of Cooperatives and SMEs, the European Union Delegation (EUD), provincial governments, business associations, entrepreneurs, and foreign buyers participated via Zoom or Youtube. Ruth Joanna Samaria, the Trade Attaché in Paris, also attended the webinar.
The webinar aimed to facilitate discussion between Indonesian Small and Medium Enterprises (SMEs) and international buyers on opportunities and challenges for patchouli exports, particularly the European market. The discussion will also feed into the Major Project designed by Bappenas. This project aims at streamlining support to small enterprises in Indonesia. The project is currently being piloted for 5 sectors including patchouli oil. The Ministry of Cooperation and SME will lead the implementation of the Major Project commencing in 2022.
The Director of National Export Development, Miftah Farid, appreciated the dialogue initiative and highlighted its importance, as Indonesia is the 4th largest producer of essential oils in the world.
"Patchouli has great potential in terms of application and commercial. It's widely used in the beauty industry, such as cosmetics, perfumes, personal care and essential oils," Mr Miftah said.
He also reiterated the Government's commitment to providing full support to SMEs to improve competitiveness in the global market.
Delivering opening remarks on behalf of the EU's Head of Cooperation, Martin Mitov, said that the demand for essential oil is growing in Europe and experiencing steady growth.
He added that the currently negotiated Indonesia-EU CEPA would open more opportunities and become a big boost for Indonesian exporters who will benefit from the significant tariff reductions.
One of the discussion panellists, Mostapha Bessalah, the Manager of Natgreen, a France-based essential oil company, raised the issue of difficulties in getting a certification in Indonesia that prevented the small producers from meeting the demand for certified patchouli oil.
Sustainability was also one of the issues raised by the panellists, Ard Verloop, the Chief Executive Officer of PT Natura Aromatik Nusantara, and Floris Graziosi, the Manager PT Florindo Selaras Karya.
Responding to the supply sustainability issue, Syaifullah Muhammad, the Head of Atsiri Research Center, Syiah Kuala University, Banda Aceh, was confident that with the replanting of patchouli (Pogostemon cablin) in all Aceh districts, the supply would be more sustainable.
"During the prolonged Aceh conflict, the patchouli plantations were abandoned and only survived by four districts. Today, all 16 districts in Aceh replanted patchouli," Syaifullah said.
The Head of Planning and Control Division, Aceh Tamiang District Planning Agency (Bappeda), Muhammad Yani, confirmed the patchouli replanting in Aceh Tamiang.
"We're utilising abandoned land to plan the patchouli sustainably, without encroaching forest," Yani said.
Commenting on the certification issue, Syaifullah proposed developing and strengthening the patchouli export ecosystem by leveraging the collaboration and cooperation of Penta Helix stakeholders, which are Government, Private Sector, Community, University, and Media.
The Indonesian Trade Attaché in Paris, Ruth Joanna Samaria, agreed with Syaifullah, saying that the issues would be manageable to resolve by working together. She also confirmed the growing demand for certified patchouli oil in Europe. She reassured the Indonesian exporters that the Indonesian trade representative office in Paris would always support the promotion of Indonesian products in France.
