Minister Flags Off $1M Kratom Exports to US & Europe
Lamseen – Trade Minister Budi Santoso officially sent off 13 containers of kratom products for export to the United States and Europe. The consignment, produced by PT Oneject Indonesia, weighs 351 tons and holds a total value of $1.053 million. The send-off ceremony took place at the exporter’s office in Bekasi District, West Java, on Friday.
“Kratom is indeed a unique commodity,” Santoso stated during the event. He emphasized the growing international demand for kratom-based products, which are widely used in herbal and wellness industries. This export marks a significant step in expanding Indonesia’s presence in the global kratom market.
The kratom shipment consists of finished products rather than raw leaves. This aligns with Trade Minister’s Regulation No. 21 of 2024, which sets clear guidelines on the types and sizes of kratom allowed for export. By adhering to these regulations, Indonesian exporters can ensure compliance with international trade standards while adding value to the product.
Santoso underscored the importance of exporting processed kratom rather than raw materials. He highlighted that finished products increase economic value, create more job opportunities, and enhance Indonesia’s competitive edge in the global market. He also encouraged more local businesses to explore kratom’s potential as an export commodity.
Trade Minister Budi Santoso emphasized the challenges Indonesian farmers faced before regulations restricted the export of raw kratom. He stated that without a ban on raw exports, farmers suffered financial losses and missed out on significant economic opportunities.
In the past, Indonesian farmers struggled with various issues related to exporting raw leaves. The leaves often experienced quality degradation during transport, reducing their market value. Additionally, international buyers offered lower prices for raw leaves, leaving farmers with minimal profits.
Santoso pointed out that importing countries benefited more from Indonesia’s raw kratom exports. These nations processed the raw leaves into finished products and sold them at significantly higher prices to third-party markets. As a result, foreign companies reaped greater financial gains while Indonesian farmers remained at a disadvantage.
To address these issues, the Indonesian government implemented Trade Minister’s Regulation No. 21 of 2024. This policy ensures that only processed kratom products are eligible for export. By mandating the export of finished products, the regulation increases the commodity’s economic value, enhances Indonesia’s competitive position, and creates more job opportunities in the processing industry.
Trade Minister Budi Santoso explained that the government took decisive action to address issues surrounding exports. After conducting a series of limited meetings, officials introduced several regulations, including Trade Minister’s Regulation No. 21 of 2024. This policy aims to protect Indonesian farmers and increase the value of exports.
Santoso elaborated on the regulation’s key provisions. He stated that kratom leaves can only be exported in the form of crumbs or powder measuring less than 600 microns. Any kratom product exceeding this size is classified as raw material and is not eligible for export. This ensures that Indonesia exports higher-value products rather than unprocessed raw leaves.
The minister emphasized that this regulation aligns with the government’s broader natural resource downstreaming policy. He encouraged Indonesian businesses to develop even more refined kratom products with greater market value. By focusing on processed kratom, Indonesia can maximize economic benefits, create jobs, and strengthen its global position.
Santoso expressed confidence that the regulation would drive growth for both farmers and industries. He noted that with clear guidelines in place, Indonesian kratom producers could focus on market expansion and product innovation. He urged stakeholders to explore promising international markets that offer sustainable demand for kratom-based products.
Looking ahead, the government remains committed to supporting farmers and exporters. By prioritizing processed exports, Indonesia ensures fair pricing, maintains product quality, and prevents other countries from profiting more from its raw materials. As demand grows in the US and Europe, Indonesian kratom producers are well-positioned to thrive in the global market.
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