Indonesia's rich array of spices continues to captivate the global market, with more than 400 types spread worldwide. The Spice Nation Foundation notes over 275 varieties originating from Indonesia have been pivotal since the 15th century. According to the Central Statistics Agency (BPS), Indonesia exported 148,220 tons of spices from January to November 2023, amounting to USD 564.12 million or approximately IDR 8.78 trillion. While the volume increased by 29.77% year-on-year, the value decreased by 4.16%. Key spices like pepper, vanilla, cinnamon, cloves, nutmeg, cardamom, ginger, and turmeric remain sought after globally. Despite an aggregate decline in spice prices, demand for Indonesian spices remains robust, as indicated by Rini Satriani, Head of Research and Development Division at the Indonesian Export Financing Agency (LPEI). Major export destinations for spices include China, the United States (US), India, Vietnam, and the Netherlands. Notably, the highest export growth from January to November 2023, compared to the same period in the previous year, was recorded in Bangladesh, Pakistan, China, India, and Peru.
Spice varieties such as nutmeg, mace, and cardamom play crucial roles in the food and cosmetic industries. Others like fennel, coriander, and cumin demonstrate health benefits ranging from digestive care to blood sugar regulation and reducing bad cholesterol. Despite a decline in demand for certain spices like nutmeg, mace, cardamom, pepper, and cinnamon from January to November 2023, others experienced positive growth. Cloves, for instance, witnessed a 61.03% YoY growth, while fennel, coriander, and cumin grew by 81.55%. Ginger, turmeric, and other spices showed a remarkable growth of 139.47% YoY during the same period. Although Indonesia's spice trade has maintained a surplus since 2017, challenges such as climate change and economic slowdowns in some target countries need attention, as they could hinder spice exports. Recognizing the enormous potential in spice exports, the LPEI, through its Village Foreign Exchange Program, continues to provide comprehensive training and integrated support to enhance the knowledge of spice farmers, ensuring social impact, environmental sustainability, and increased competitiveness of Indonesian spices in the global market. Throughout 2023, LPEI established 917 Foreign Exchange Villages across Indonesia, focusing on spice production in villages and directly benefited 80,234 farmers, fishermen, craftsmen, and other residents, aligning with LPEI's mission as the Special Mission Vehicle of the Ministry of Finance, focusing on beyond financing, developmental impact, and sustainability in the export ecosystem.
