Indonesia Eyes Strong Growth in Essential Oil Exports

RRI.CO.ID, Jakarta - Indonesia’s essential oil exports are projected to record strong growth in 2026, supported by the government’s push for downstream processing to increase domestic value added.

The export value of Indonesian essential oils under HS code 3301 reached USD 348.7 million in 2025, up 34.4 percent from USD 259.5 million in 2024.

Industry Minister Agus Gumiwang Kartasasmita said the rise in exports reflects the strong competitiveness of Indonesian essential oils in the global market.

“This momentum needs to be leveraged to strengthen industrialization and increase domestic value added,” he said in a statement in Jakarta on Wednesday, August 19, 2026, as quoted on the ministry’s official website.

In 2025, Indonesia ranked fifth among the world’s largest essential oil exporters, behind India, the United States, France, and Brazil. Global essential oil exports reached USD 6.49 billion in 2025, up from USD 6.29 billion in 2024.

Patchouli oil remains one of the ministry’s priority commodities. Indonesia’s patchouli oil exports reached USD 173.4 million in 2025, a 22.7 percent increase from USD 141.3 million in 2024.

The product already has export markets in India, Singapore, France, Spain, the US, China, Switzerland, Belgium, the Netherlands, Germany, the UK, and Turkey.

The ministry’s Acting Director General of Agro‑Industry, Putu Juli Ardika, said patchouli oil can be further processed using purification and fractionation technologies.

“By strengthening downstream processing, the use of patchouli oil can be expanded -- not only for the raw material market but also as an input for the perfume, cosmetics, toiletries, pharmaceutical, pesticide, and aromatherapy industries,” he said.

According to Putu, developing the essential oil industry requires strengthening the supply chain from upstream to downstream. This includes improving the capacity of farmers and distillers, strengthening cooperatives, maintaining raw material quality and continuity, and expanding access to financing and markets.

“Strengthening the essential oil industry requires collaboration between the government, industry players, farmers, research institutions, universities, and market partners to build a strong ecosystem from upstream to downstream,” he said.

Downstream processing is expected to broaden product diversification, open new investment and market opportunities, and enhance the competitiveness of Indonesia’s essential oil industry. The ministry believes this step will ensure that rising global demand translates into greater domestic economic value. ***