KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Kadin Promotes Stronger Downstream Development of Indonesia’s Herbal Supply Chain

Jakarta – Vice Chairwoman for Agriculture of the Indonesian Chamber of Commerce and Industry (Kadin Indonesia), Devi Erna Rachmawati, held a strategic meeting with Mustika Ratu Director and Chairwoman of Kadin Indonesia’s Permanent Committee on Herbal Plants, Kusuma Ida Anjani, at Menara Kadin Indonesia, South Jakarta, on Thursday (June 18, 2026).

Devi stated that the meeting focused on the development of Indonesia’s national herbal ecosystem, opportunities for industrial downstreaming, challenges faced by farmers, and the implementation of programs aimed at strengthening the country’s herbal supply chain.

“Indonesia is one of the world’s most biodiverse countries, supported by thousands of medicinal plant species and a long-standing herbal medicine tradition, or jamu, which has become part of the nation’s cultural heritage. Demand for herbal and natural-based products continues to rise, both in domestic and international markets,” said Devi.

According to industry data cited by Devi, Indonesia’s herbal market was estimated to be worth approximately US$13.7 billion in 2024 and is projected to grow to more than US$25 billion by 2033, with an average annual growth rate of around 7.1 percent.

Devi emphasized that the development of the herbal sector contributes not only to national health resilience but also has the potential to become a new driver of economic growth in the agricultural sector.

“Indonesia possesses extraordinary herbal resources. Our challenge today is no longer limited to cultivation. Rather, it is how we can build an integrated value chain from upstream to downstream that generates high-value-added products, improves farmers’ welfare, and strengthens Indonesia’s competitiveness in the global market,” she explained.

She further outlined several opportunities for the development of Indonesia’s herbal industry, including:

  • Rising global demand for herbal and natural wellness products.
  • Expansion of the modern herbal medicine, health supplement, herbal cosmetics, and functional food industries.
  • Strengthening exports of Indonesian herbal products to markets across Asia, the Middle East, Europe, and the United States.
  • Leveraging digital technology and e-commerce platforms to broaden market access.
  • Developing herbal cultivation centers through partnerships between farmers and industry players.

As a follow-up, Devi said Kadin Indonesia’s Agriculture Division, together with the Permanent Committee on Herbal Plants, will promote several priority programs, including:

  • Mapping Indonesia’s leading herbal commodities.
  • Developing region-based herbal cultivation clusters.
  • Providing Good Agricultural Practices (GAP) training for farmers.
  • Strengthening partnerships between farmers and herbal processing industries.
  • Establishing downstream processing and herbal product innovation centers.
  • Expanding access to financing and investment for the herbal sector.
  • Enhancing the promotion and export of Indonesian herbal products.

Meanwhile, Kusuma Ida Anjani emphasized the importance of collaboration among businesses, farmers, academics, and government institutions to accelerate the downstream development of Indonesia’s herbal industry.

“The modern herbal industry requires a supply of high-quality, sustainable raw materials that meet international standards. Therefore, partnerships with farmers and the strengthening of cultivation systems are key factors in advancing Indonesia’s herbal industry,” Kusuma concluded.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry