Indonesian Political, Business & Finance News

US Citizens Flock to Indonesian Kratom Leaf, These Are Its Benefits

| Source: CNBC Translated from Indonesian | Trade
US Citizens Flock to Indonesian Kratom Leaf, These Are Its Benefits
Image: CNBC

Many Indonesians remain unfamiliar with the herbal plant known as kratom. The plant, with the scientific name Mitragyna speciosa, has long been used traditionally as herbal medicine and medicinal preparations.

Beyond its use as herbal medicine, kratom holds significant economic potential. The plant, often dubbed the “leaf of paradise,” is considered a promising strategic export commodity for Indonesia, particularly to numerous countries in Europe and North America.

According to the Directorate General of Sustainable Forest Management of the Ministry of Environment and Forestry, kratom is a tropical plant originating from Southeast Asia, including Indonesia. It is noted that kratom possesses diverse benefits.

Based on Statistics Indonesia (BPS) data from 2023, the United States is the largest importer of kratom from Indonesia, with a volume reaching 4,694 tonnes and export value of approximately US$9.15 million.

According to Ministry of Trade data, Jakarta Special Capital Region has become the principal player in kratom exports overall. Its contribution reaches US$4.45 million, or approximately 60.75% of total export value.

West Kalimantan and East Java follow in second and third positions with significant contributions. In foreign markets, kratom processed into extract form is valued at up to US$6,000 per kilogramme.

However, kratom faces challenges regarding its legal status in international markets. In the United States, demand for kratom continues to increase despite its legal status still not receiving full endorsement from the US Food and Drugs Administration (FDA).

Nevertheless, American consumers purchase substantial quantities of kratom and kratom-based products, both online and in petrol station minimarkets, general stores, tobacco shops, and bars, making it an industry worth US$1 billion.

In Japan and Germany, it is permitted for limited use. India, with a more permissive regulatory approach, has become one of the largest export markets. This varying legal landscape requires Indonesia’s attention in maintaining product quality to meet evolving global standards.

Domestically, Jakarta Special Capital Region, West Kalimantan, and East Java are the principal provinces supporting kratom exports, accounting for nearly all national export value. This demonstrates the importance of downstream processing development in producing regions to ensure sustainability and further development of this commodity.

Kratom itself is known for its benefits in traditional medicine, such as alleviating pain and anxiety, and assisting detoxification processes for opioid users. Although kratom stirred controversy in Indonesia and was labelled a “new narcotic,” it has successfully penetrated the US market and developed into a multi-billion-dollar industry.

View JSON | Print