The world essential oil
trade value is more than USD 4 billion, with an average growth rate of about 5%
per year. In the world, there are more than 300 types of essential oils that
are traded in the international market. While the Indonesian essential oils
that have been, are being, and have the potential to be developed are more than
40 types, with value of Indonesian essential oil exports at approaximately USD
120 million/year. It was stated by Chairman of the Essential Oil Council of
Indonesia (DAI), Dr. Mieka S. Rusli, in essential oil seminar, on Thursday
(February 5), in Bogor.
Around 80% of total production of Indonesian essential
oils is exported. Demand for Indonesian essential oil is more than 1,000
tons/year, including clove leaf/steam oil, lemongrass oil, patchouli oil, and
eucalyptus oil. While, demand for turpentine oil is more than 10,000 tons/year.
World’s clove oil demand is around 5,000-6,000 tons/year.
Biggest consumer of clove oil is the aromatic clove oil derivatives chemical industry
that has developed in the country. Therefore, the challenge to be faced is to
maintain and increase demand.
World’s lemongrass oil demand is cover 2,000 tons/year.
China as a market leader of world’s citronella oil took over the role of
Indonesia in the world’s supply of lemongrass oil. However, currently, China’s
lemongrass oil production tends to go down, but domestic consumption increased
to more than 800 tons/year. While, Indonesian lemongrass oil production lately
slumped around 300 tons/year. The use of lemongrass oil is very diverse, among
others, for flavor-fragrance, detergents, insect repellents, aromatic
chemicals, and fuel additives. Insect repellents, aromatic chemicals, and fuel
additives. The challenge faced by Indonesia is to be able to restore the glory
of lemongrass oil production in Indonesia, which in the international market is
known as Java Citronella Oil.
Currently, world patchouli oil demand in normal situation
is around 1200-1500 tons/year. Meanwhile, Indonesian patchouli oil production
is about 1,500 tons/year. The biggest consumer of patchouli oil is the
fragrance industry (as fixative), but lately the fragrance industry tends to reduce
the use dosage due to sharp price fluctuations over the last 4 years. The
challenge in Indonesia is that it should be able to succeed the cultiva program
(a program intended in a sustainability of supply and transparent and fair
price for all stakeholders). Therefore, efforts to balance supply and demand
are needed.
World’s turpentine oil demand is only around tens of
thousands of tons per year. The major user of turpentine oil is aromatic
chemical industry. Indonesia exports turpentine oil of around 10,000 tons/year
in the form of crude turpentine oil. Though alpha pinene and beta pinene can be
isolated by a chemical derivatives can be made by reaction. The challenge is
the policy on sale of crude turpentine by PT Perhutani, and production efficiency
should be done in order to compete with China.
Demand for essential oils is around 100-1000 tons/year
consisting of nutmeg oil, vetiver oil, and ginger oil. World nutmeg oil demand
is about 400 tons/year, but Indonesia is only able to produce about 350 tons/year,
but Indonesia is only able to produce about 350 tons/year of nutmeg oil.
Currently, it experienced scarcity of nutmeg oil production, as nutmeg plants
in Sumatra were attacked by pests. World’s vetiver oil demand is about 100
tons/year, but Indonesia was only able to produce about 30 tons/year. China’s
ginger oil is made from ginger pulp, so the price is cheap and can dominate the
international market. Indonesia is familiar with Fresh Ginger Oil which price
is more expensive, but world demand is limited.
World’s essential oil demand which is less than 100
tons/year includes sandalwood oil, cananga oil, massoia oil, cubeb oil, and
lime leaf oil. Indonesia is a world major producer of sandalwood oil, but
lately Australia started to do massive planting of Saltum album (sandalwood
tree species), and in 2023 it is estimated to be able to produce sandalwood oil
at more than 100 tons/year. While, Indonesia’s massoia oil production is
estimated at around12-15 tons/year. Cubeb oil production is only several tons,
due to raw material problem because cubeb plant has not been cultivated, and
cubeb oil consumption is still limited. While, lime leaf oil not yet has a
significant market share, because this type of oil is not yet popular for use
as flavor. (Dm) (E)
Business News - February 11, 2015
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