Trade Minister Budi Santoso recently oversaw the departure of 13 containers filled with kratom products from PT Oneject Indonesia, destined for the US and Europe. This significant export, weighing a total of 351 tons and valued at over $1 million, marks a pivotal moment for the Indonesian kratom industry.
Standing in the exporter’s office in Bekasi District, West Java, Santoso emphasized the uniqueness of kratom as a commodity. He pointed out that the exported kratom products are in their finished form, rather than as raw leaves, in accordance with Trade Minister’s Regulation No. 21 of 2024.
Reflecting on the challenges faced by Indonesian kratom farmers in the past, Santoso highlighted the detrimental effects of exporting raw leaves. Farmers often experienced quality degradation and unfavorable prices, while importing countries reaped the benefits by processing and exporting the leaves as finished products.
To address these issues, the government took action by implementing regulations that restrict the export of kratom leaves to only those in the form of crumbs or powder measuring less than 600 microns. Leaves exceeding this size are considered raw products, subject to export limitations.
In addition to regulating kratom exports, Santoso underscored the government’s commitment to promoting downstreaming policies for natural resources. By encouraging the export of higher-value kratom products, Indonesia aims to boost the growth and progress of farmers and industries in the sector.
Looking ahead, Santoso expressed optimism about the potential for growth and development in the kratom industry. He emphasized the importance of identifying promising markets to maximize the benefits of the existing regulations and support the advancement of local farmers and businesses.
Expert Insights on the Kratom Industry
In a recent interview, industry expert Teten shared his perspective on the global market value of kratom. He highlighted the high transaction value associated with kratom products and emphasized the importance of strategic market positioning to capitalize on this growing industry.
Teten’s insights shed light on the potential for Indonesian kratom to carve out a significant presence in the global marketplace. By leveraging the unique qualities of Indonesian kratom and adhering to regulatory standards, the industry stands poised for continued success and expansion.
The Future of Kratom Trade in Indonesia
As Indonesia officially regulates the kratom trade, stakeholders across the industry are optimistic about the future. With a focus on value-added exports and sustainable practices, the country is poised to establish itself as a key player in the international kratom market.
By fostering innovation, supporting local farmers, and exploring new market opportunities, Indonesia is paving the way for a thriving kratom industry. As Minister Santoso’s recent export milestone demonstrates, the future looks bright for Indonesian kratom on the global stage.
