KNEKS and ARC USK Develop Patchouli Oil as Import Substitution for Halal Raw Materials

The National Committee for Islamic Economy and Finance (KNEKS) and the Atsiri Research Centre at Syiah Kuala University (ARC-USK) are collaborating on the downstream development of halal raw materials based on patchouli oil. This strengthened cooperation was marked by the signing of an Implementation Agreement, represented by KNEKS Director of Sharia Business and Entrepreneurship, Putu Rahwidhiyasa, and Head of ARC-USK, Dr Syaifullah Muhammad, in Jakarta.

In an effort to increase the added value and competitiveness of the halal industry and halal MSMEs, one of the strategic programmes is the strengthening of the Halal Value Chain. Halal certification requires connectivity across the supply chain from upstream to downstream. According to Putu, providing halal raw materials will make it easier for processing industries to meet halal product assurance requirements.

“Various research studies on patchouli oil conducted by ARC are very beneficial in providing natural halal raw materials for the cosmetic and pharmaceutical industries. This also supports the provision of alternatives to replace chemical raw materials that still rely on imports,” said Putu.

ARC-USK highly welcomes the various forms of support and facilitation provided by KNEKS. Syaifullah stated that for over 15 years, ARC-USK has been conducting research and community assistance to revive patchouli oil production in Aceh, which was once a flagship product of the region.

“Some research results have been successfully commercialised by industry. Currently, we are developing natural Crystal Patchouli, which is highly sought after by cosmetic companies, with assistance from KNEKS,” added Syaifullah.