The Ministry of Industry (Kemenperin) is encouraging the development of the essential oil industry, which holds significant potential in Indonesia. This is because, of the 97 known essential oil plant species worldwide, approximately 40 thrive in Indonesia. The Inspector General of the Ministry of Industry, M. Rum, revealed that of these, at least 25 essential oil plant species are already commercially cultivated. These include patchouli, citronella, cloves, nutmeg, and ylang-ylang. "With the support of favorable agro-climatic conditions and a strong cultural heritage, we have a solid foundation for building a highly competitive essential oil industry," said Rum while representing Minister of Industry Agus Gumiwang Kartasasmita at the inauguration of Aromatika Indofest 2025 at the Kemenperin office on Wednesday (July 9th). Rum explained that Indonesia's essential oil exports reached USD 259.54 million in 2024. Patchouli oil was the primary commodity, contributing approximately 54%, or USD 141.32 million. Other essential oil products that support exports include clove, nutmeg, sandalwood, and citronella oils.
Globally, Indonesia ranks 8th among essential oil exporters, contributing 4.12% to the global market. However, most of the products exported are still raw materials. "Therefore, strengthening downstream processing is a strategic urgency," said Rum. Krisna Septiningrum, Director of Forestry Products and Plantation Industry at the Ministry of Industry, revealed that Indonesian essential oil exports are targeting several countries, including India, China, the United States, and several European countries. There are ample opportunities for developing export markets, in line with the increasing demand for essential oil-based products. The Director General of Agro-Industry at the Ministry of Industry, Putu Juli Ardika, added that current global trends show increasing demand for products based on natural and sustainable ingredients. In terms of production, the total national essential oil production capacity reaches 26,398 tons per year.
