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Jakarta, January 17, 2023 - Indonesia, known for its wealth of spices, not only enhances the flavor but also serves as an inspiration for cultural interactions and public health. Negeri Rempah Foundation records over 400 types of spices distributed worldwide, and Indonesia boasting 275 varieties since the 15th century, standing as its epicenter.
Beyond providing unique flavors, Indonesian spices such as pepper, vanilla, cinnamon, cloves, nutmeg, cardamom, ginger, and turmeric have captivated the global market. According to the Central Statistics Agency (BPS), spice exports from January to November 2023 reached 148.22 thousand tons (a 29.77% YoY increase) with a total export value of USD 564.12 million (a 4.16% YoY decrease). This indicates a sustained demand for Indonesian spices amid the overall decline in spice prices.
China, the United States, India, Vietnam, and the Netherlands are the main destinations for spice exports. Meanwhile, the highest export growth during the January-November 2023 period compared to the same period the previous year was recorded for Bangladesh, Pakistan, China, India, and Peru.
"In the early stages of the COVID-19 pandemic, awareness of the importance of health increased. Spices are not just seasonings but also raw materials for local herbs and medicines that support the immune system. This also contributes to the global demand for spices," said Rini Satriani, Head of Research and Development Division at LPEI.
Furthermore, spices such as nutmeg, mace, and cardamom play a vital role in the food and cosmetic industries. Additionally, fennel, coriander, and cumin prove their health benefits, ranging from maintaining stomach health to regulating blood sugar levels and reducing bad cholesterol.
Throughout January-November 2023, there was a decrease in demand for spices such as nutmeg, mace, cardamom, pepper, and cinnamon. On the other hand, some spices showed positive growth, including cloves, which grew by 61.03% (YoY), fennel, coriander, cumin grew by 81.55%, and ginger, turmeric, and other spices grew by 139.47% (YoY).
"Although some spices experienced a decrease in demand, and others showed positive growth like cloves and various spices" she said.
Despite Indonesia's spice trade balance being consistently surplus since 2017, challenges such as climate change and economic slowdowns in some destination countries need to be monitored as they can hinder the export of Indonesian spices.
Recognizing the enormous potential for spice exports, LPEI, through the Go Export Villages program, continues to provide a series of integrated training and mentoring to enhance the knowledge of spice farmers, enabling them to enhance the competitiveness of Indonesian spices in the global market.
In 2023, LPEI successfully established 917 Go Export Villages throughout Indonesia, some produce spices, such as the Ginger Go Export Villages in Pacitan, East Java, the Cardamom Go Export Villages in Pangandaran, West Java, and the Vanilla Go Export Villages in East Nusa Tenggara. The Go Export Villages Program directly benefits 80,234 farmers, fishermen, craftsmen, and other residents. Aligns with LPEI's mission as the Special Mission Vehicle (SMV) of the Ministry of Finance of the Republic of Indonesia, focusing on beyond financing, developmental impact, and sustainability in the export ecosystem.
The Go Export Villages program empowers communities of farmers/artisans/cooperatives, as well as SMEs with export-oriented flagship products. The program is designed to provide comprehensive and sustainable mentoring. "Activities include mentoring to overcome export community barriers, such as institutional strengthening, production capacity improvement, export procedures, licensing and certificate on, as well as market access," said Sofyan Naibaho, Head of the Consultation Services Division at LPEI.
Contact Person
Chesna F. Anwar
Corporate Secretary – Lembaga Pembiayaan Ekspor Indonesia
Ph. : (021)39503600
Email : corpsec@indonesiaeximbank.go.id
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