Indonesia’s Essential Oil Exports Show Strong Growth Prospects

RRI.CO.ID, Jakarta - Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, said Indonesia’s essential oil exports are showing increasingly positive prospects. Based on 2025 trade data, Indonesia’s exports of essential oil products under HS 3301 reached USD 348.7 million, an increase of around 34.4 percent from USD 259.5 million in 2024.

“This increase in exports shows that Indonesian essential oil products are competitive and enjoy strong demand in global markets. This momentum needs to be leveraged to strengthen industrialization and increase domestic added value,” the Minister said in a statement in Jakarta on Wednesday, August 19, 2026.

In 2025, Indonesia ranked as the world’s fifth-largest essential oil exporter, after India, the United States, France, and Brazil. During the same period, global essential oil exports reached approximately USD 6.49 billion, up from USD 6.29 billion in 2024.

According to the Minister, the development of the essential oil industry still faces several challenges in producing higher-value downstream products. However, patchouli oil has significant development potential, given Indonesia’s strong production base and established export markets.

Trade data showed that Indonesia’s patchouli oil exports reached USD 173.4 million in 2025, an increase of around 22.7 percent from USD 141.3 million in 2024. The product has established export markets in countries including India, Singapore, France, Spain, the United States, China, Switzerland, Belgium, the Netherlands, Germany, the United Kingdom, and Türkiye.

Acting Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, said downstream development of patchouli oil has significant potential. Through purification and fractionation technologies, it can be processed into higher-value products such as hi-grade patchouli, fragrances, antiseptics, medicated oils, and aromatherapy products.

“By strengthening downstream processing, the use of patchouli oil can be expanded beyond the raw-material market and become an input for the perfume, cosmetics, toiletries, pharmaceutical, pesticide, and aromatherapy industries,” he said.

Putu added that downstream development needs to be integrated with efforts to strengthen the industrial ecosystem from upstream to downstream. This includes improving the capacity of farmers and distillers, strengthening institutions such as cooperatives, improving the quality and continuity of raw materials, and expanding access to markets and financing.

“Strengthening the essential oil industry requires collaboration among the government, industry players, farmers, research institutions, universities, and market partners to build a strong upstream-to-downstream ecosystem. This will connect raw-material potential with global industrial and market demand while ensuring farmers and distillers benefit from rising demand and downstream industries receive quality, sustainable raw materials,” he said.