Colombia
Enhancing Export Promotion Strategies for a Sustainable Essential Oil Sector in Indonesia
In the second half semester of 2024, SIPPO Indonesia continues its efforts to support the BSOs in strengthening their export promotion strategies, to further support them in providing better services to suppliers and producers to increase their competitiveness in the global market, particularly in the EU and Swiss markets. In September and October, we focused our Sector Export Promotion Strategy on the natural ingredients sector, mainly on the sustainable essential oils with the Indonesian Essential Oil Councils (DAI).
Workshop on Global Natural Cosmetics Market with Ecovia Intelligence
On the 3rd of September 2024, SIPPO in collaboration with Ecovia Intelligence supported DAI in organizing a workshop on “Global Natural Cosmetics Market: Update and Outlook” in Jakarta. This workshop aims to provide a better understanding of the global trends and opportunities of natural cosmetic ingredients for natural essential oil producers in Indonesia, including ethical labels and sustainability schemes in the cosmetics industry. This workshop is an important exchange session with the natural essential oil producers in Indonesia noting there is a growing demand natural essential oil in the global market which continues to increase post pandemic COVID-19. In addition, currently the cosmetic and ingredient firms in the global market have made commitments to move away from petrochemical-based raw materials. As a result, the number of sustainability schemes and ethical labels is increasing. Ethical labels and sustainability schemes are important for Indonesian companies as they are becoming an important requirement for buyers, especially those in Europe. Although it can be considered expensive, the producers will benefit from these schemes, including increased market access and command a premium for their ingredients which adds value to their products.
National Conference on Essential Oils 2024
Following the workshop, SIPPO participated in the National Conference on Essential Oils (KNMA) organized by DAI in Bogor from 1 to 3 October 2024. The workshop is an annual event organized by DAI to gather with all its members across Indonesia, to share knowledge, research results, and market opportunities for essential oils producers. This year, the conference carries the theme of “Promoting circular economy to support the sustainability of essential oil SMEs in Indonesia”. Among all the topics, sustainability was one of the main thematic issues in the conference. Few interesting discussions were found on the benefits of essential oil (especially clove oil and citronella oil) as bioaditive solar, as well as natural essential oils as an alternative for anesthesia to reduce the use of chemical materials.
At the opening of the conference, SIPPO consultant (Andrew Jones) presented the market insights and market opportunities as a result of the SIPPO Import Forum meeting in Switzerland in June 2024. It was highlighted that the SIPPO Import Forum has provided a strategic forum to raise awareness of the DAI to Europe organization, increased understanding of EU and Swiss requirements, and created opportunities for DAI members to network with members of the Swiss Cosmetic and Detergent Association (SKW) in Europe.
Andrew Jones presented the market insights during the opening ceremony of KNMA 2024
On the second day, SIPPO facilitated a strategic meeting between SIPPO, DAI, and other SECO-related projects, namely Promise 2 Impact from International Labour Organization (ILO), to find synergies in the development of digital traceability system along the natural essential oil supply chain to ensure the sustainability of the essential oil products, called MyNilam. The chairmain of DAI, Dr. Irdika Mansyur, appreciated and welcomed the tool to support DAI activities in the future. “MyNilam is notably an important tool for our essential oil producers. DAI will be happy to collaborate further on this project once ILO secures the copyright for this tool” as Dr. Irdika said.
Meeting between SIPPO, DAI, and Promise 2 Impact project from ILO
Finally, a field visit was conducted to a nutmeg oil producer’s company in Bogor where the participants learned about the whole process of producing nutmeg oil. A field visit was also conducted to an essential oil producer’s company (PT. Nilam Widuri) in Gunung Putri was also conducted where the participants learned about the quality and standard maintenance in producing a large quantity of essential oils for export.
