Indonesia is known for one of its riches, namely spices, which are in demand in the global market. The Negeri Rempah Foundation noted that more than 400 types of spices are spread throughout the world and Indonesia with 275 types of spices has been the center since the 15th century.
The Central Statistics Agency (BPS) noted that during January-November 2023, Indonesia’s spice export volume reached 148.22 thousand tons with a value of US$ 564.12 million or equivalent to IDR 8.78 trillion (exchange rate of IDR 15,569). In terms of volume, it increased by 29.77% (yoy), but in terms of value it decreased by 4.16% (yoy).
“Indonesian spices such as pepper, vanilla, cinnamon, cloves, nutmeg, cardamom, ginger and turmeric have captivated the global market until now. This indicates that demand for Indonesian spices remains strong amid the phenomenon of declining aggregate spice prices,” said Head of the Research and Development Division of the Indonesian Export Financing Institution (LPEI), Rini Satriani in a written statement, Wednesday (17/1/2023).
China, the United States (US), India, Vietnam and the Netherlands are the main destinations for spice exports. The highest increase in exports in the January-November 2023 period compared to the same period the previous year was recorded in Bangladesh, Pakistan, China, India and Peru.
“At the beginning of the COVID-19 pandemic, awareness of the importance of health increased. Spices are not only seasonings, but also raw materials for local herbs and medicines that support the body’s immune system. This also supports the world’s demand for spices,” Rini explained.
Spices such as nutmeg, star anise and cardamom are considered to have an important role in the food and cosmetic industry. In addition, fennel, coriander and cumin have proven their health benefits ranging from maintaining stomach health to maintaining blood sugar levels and reducing bad cholesterol.
Throughout January-November 2023, there was a weakening demand for spices such as nutmeg, star anise, cardamom, pepper and cinnamon. On the other hand, several spices posted positive growth such as cloves which grew 61.03% (yoy), fennel, coriander, cumin grew 81.55%, and ginger, turmeric, and other spices grew 139.47% (yoy).
Although Indonesia’s spice trade balance has always been in surplus since 2017, the challenges of climate change and economic slowdown in several destination countries are seen as needing to be watched out for because they could hamper Indonesia’s spice exports.
Seeing the huge potential for spice exports, LPEI through the Foreign Exchange Village Program continues to provide a series of integrated training and mentoring to improve the knowledge of spice farmers so that it has a social impact, is environmentally friendly, sustainable, and is able to increase the competitiveness of Indonesian spices in the global market.
Throughout 2023, LPEI has built 917 Foreign Exchange Villages throughout Indonesia. Some of them produce spices such as the Jahe Gajah Pacitan Foreign Exchange Village in East Java, the Pangandaran Cardamom Foreign Exchange Village in West Java, and the Vanilla Foreign Exchange Village in East Nusa Tenggara.
LPEI’s Foreign Exchange Village Program is claimed to provide direct benefits to 80,234 farmers, fishermen, craftsmen and other residents. This is in line with LPEI’s mission as the Ministry of Finance’s Special Mission Vehicle (SMV), to become a strategic partner in the export ecosystem that focuses on beyond financing, developmental impact, and sustainability.
Foreign Exchange Village is a community empowerment program for farmers/craftsmen/cooperatives, as well as SMEs that have superior export-oriented products. The Foreign Exchange Village program is designed to provide comprehensive and sustainable assistance.
“The activities carried out are in the form of assistance to overcome community export barriers, including institutional strengthening, increasing production capacity, export procedures, licensing and certification, and market access,” said Head of the LPEI Consulting Services Division, Sofyan Naibaho.
source: https://finance.detik.com/berita-ekonomi-bisnis/d-7145574/diminati-china-as-ri-ekspor-rempah-148-ribu-ton.