PFF Bali Boosts Indonesia’s Essential Oil Downstream Industry
- 10 Mei 2026 21:14 WIB
- Voice of Indonesia
Key Points
- The Ministry of Industry has developed the Flavor and Fragrance Center (PFF) in Bali to serve as a strategic hub for innovation, business incubation, and professional training.
- The government aims to stop the export of raw essential oils, instead processing them into high-value products like perfumes, cosmetics, aromatherapy, and household goods.
RRI.CO.ID, Jakarta - The Indonesian Ministry of Industry is stepping up efforts to increase the value of the national essential oil sector. This effort is supported by the presence of the Flavor and Fragrance Center in Bali, which is positioned as a hub for innovation, training, and business incubation.
The Ministry of Industry is strengthening the downstream processing of Indonesia’s essential oil industry through the development of the Flavor and Fragrance Center (PFF). This center is designed to serve as a hub for innovation, training, and business incubation.
Industry Minister, Agus Gumiwang Kartasasmita, said that Indonesia has strong potential to expand its flavor, fragrance, and wellness industries using natural ingredients. This potential is well-supported by the country's rich biodiversity and an abundant supply of essential oil commodities.
“The development of the PFF in Bali is part of the government’s effort to strengthen the downstream processing of national essential oils so they are not exported in raw form. Through this step, these commodities will be processed into high-value products such as perfumes, cosmetics, and natural-based household goods,” he said, as quoted by Antara.
According to the minister, the PFF facility in Bali has strong market prospects for downstream essential oil development, supported by the region’s high tourism activity as well as its growing spa and wellness industries.
He added that the healthy-lifestyle trend is also increasing demand for aromatherapy products, spa oils, perfumes, aromatherapy candles, and natural body care products.
Acting Director General of Agro Industry, Putu Juli Ardika, said the PFF is being developed to strengthen Indonesia’s flavor and fragrance ecosystem through improved human resources, product innovation, and stronger industry networks.
“The Bali PFF is not only a training center, but is also expected to become a catalyst for the development of Indonesia’s national flavor and fragrance industry based on essential oils. Through this facility, we are working to bring forth innovative products that are competitive in both domestic and global markets,” he said.
Since it was established, the PFF has carried out a range of capacity-building and training programs based on essential oils. One of its strategic initiatives was a certified training program on spa oil formulation based on essential oils for 40 Indonesian migrant workers, carried out in cooperation with the Indonesian Migrant Worker Protection Agency (BP2MI).
Putu said the training is part of efforts to strengthen the skills of workers in the spa and wellness sector, including for placement in the Maldives.
The PFF has held non-certified aromatherapy blending training for internal participants from the Denpasar Industrial Training Center and the general public. Additionally, they hosted a mini class titled Create Your Scent in collaboration with Spa Factory Bali.
In addition, the center has prepared a perfume formulation curriculum based on essential oils to support the development of human resources in Indonesia’s flavor and fragrance industry.
Putu said the PFF’s development will continue to be reinforced in 2026 through hands-on training programs that support downstream essential oil industries and local creative economies.
A training session on turning used cooking oil into soap, organized by the Denpasar Industrial Training Center and the Faculty of Agricultural Technology at Udayana University, was held on March 13, 2026, with 22 participants.
The PFF Bali is also scheduled to hold a perfume-making training session on May 29, 2026, as part of efforts to build expertise in the essential-oil-based fragrance sector.
That will be followed by soap and aromatherapy candle-making training on June 29, 2026, aimed at developing natural-based wellness products.
On August 7, 2026, the center is also expected to conduct aromatherapy incense training to help diversify higher-value downstream essential oil products.
Putu added that building a strong national flavor and fragrance industry will require close cooperation between the government, academics, associations, and businesses to create a sustainable industrial value chain.
“Indonesia has great potential to become one of the world’s centers for developing flavor, fragrance, and wellness products based on natural ingredients. Consequently, strengthening downstream processing and developing industrial human resources must continue to be accelerated,” he said. ***
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