BANDA ACEH | INDATANEWS.COM - The Aceh Government continues its efforts to strengthen the business ecosystem of patchouli oil, from raw material production to industrial processing. The initiative is being carried out through the implementation of the Warehouse Receipt System (Sistem Resi Gudang/SRG) for patchouli farmers and the acceleration of downstream patchouli oil industry development, allowing this key agricultural commodity from Aceh to further enhance its competitiveness in the global market.
Aceh Governor, Muzakir Manaf, widely known as Mualem, said the provincial government is currently seeking solutions to ensure the stability of the patchouli oil business ecosystem, particularly amid various challenges faced by farmers and industry players.
"The current solution is to introduce the Warehouse Receipt System (SRG) for patchouli farmers, followed by the development of downstream patchouli oil processing," Aceh Governor Muzakir Manaf (Mualem) said on Thursday, July 23, 2026, in Banda Aceh.
The governor's statement was conveyed by Aceh Government Spokesperson Nurlis Effendi. He explained that the implementation of the SRG system was one of the outcomes of a coordination meeting on the development of the patchouli industry held on Wednesday, July 22, 2026, at the meeting room of the Economic and Development Assistant of the Aceh Provincial Government Secretariat.
SOLUTION TO STABILIZE PATCHOULI OIL BUSINESS: Aceh Governor Muzakir Manaf supports the implementation of a Warehouse Receipt System as a solution to stabilize the patchouli oil business and assist farmers in dealing with price fluctuations. (PHOTO: Adli Safwan)
Aceh Seeks Solutions to Patchouli Farmers' Challenges
Nurlis explained that Governor Mualem had previously instructed Aceh Provincial Secretary M Nasir Syamaun to formulate strategic measures to address various problems faced by patchouli farmers and stakeholders in the patchouli oil industry.
"For this reason, a coordination meeting on the development of the patchouli industry was held," he said.
The meeting was chaired by Economic and Development Assistant to the Aceh Provincial Secretary, Teuku Robby Irza. The event was also attended by Head of the Aceh Industry and Trade Agency Teuku Adi Darma, as well as Head of the Economic Bureau of the Aceh Provincial Government Secretariat, Zaini.
Also participating were Head of the Technical Implementation Unit for Control and Certification of Food Crop, Horticulture, and Plantation Seeds (BPDSBTPHP) under the Aceh Agriculture and Plantation Agency, Habiburrahman; representatives of Bank Aceh; and representatives of PT Razma Agro Jayana, Teungku Razuan.
During the meeting, the Aceh Government discussed the contrasting situation surrounding the development of the patchouli industry. On one hand, global demand for patchouli oil continues to increase, while on the other hand, farmers and entrepreneurs in Aceh continue to face numerous obstacles.
"On one side, global demand for patchouli oil is very high, but on the other side,
patchouli farmers and entrepreneurs in Aceh are experiencing difficulties," Nurlis said.
Currently, global demand for patchouli oil reaches around 2,500 tons per year. However, worldwide production is only approximately 1,600 tons annually. Indonesia remains the main supplier, accounting for around 90 percent of global patchouli oil production, with about 30 percent originating from Aceh.
Aceh Patchouli Holds Strong Potential in Global Market
Aceh patchouli oil has distinctive quality advantages due to its high patchouli alcohol (PA) content. This component makes Aceh patchouli oil an important blending agent for patchouli oils produced in various countries.
This quality has driven strong international demand for
Aceh patchouli oil, particularly from the perfume, cosmetics, pharmaceutical, and aromatherapy industries.
Despite its significant potential, the development of the patchouli economy in Aceh continues to face several challenges, especially in the upstream sector. Teuku Robby Irza highlighted several urgent issues, including unstable price fluctuations, uncertain market conditions, limited access to financing, and the absence of standardized cultivation practices.
In addition, the quality of patchouli raw materials has not yet been fully consistent because products from different regions are still mixed together. This condition creates challenges in meeting the requirements of global industries that require stable and standardized quality.
To address these challenges, the coordination meeting on patchouli industry development produced several strategic recommendations. One of them was the implementation of the Warehouse Receipt System for patchouli farmers in Aceh.
"To overcome price fluctuation problems caused by speculative market practices, an SRG system for
patchouli farmers in Aceh is needed. The government's role is essential in implementing this system," Robby said.
According to Robby, the SRG system allows farmers to store their products under better conditions. As a result, farmers do not have to immediately sell their patchouli products when prices decline due to market pressure.
DEVELOPMENT OF REFINERY INDUSTRY: The Aceh Government prepares the establishment of a refinery industry, product certification, and stronger cross-sector collaboration to develop an export-oriented patchouli industry. (PHOTO: Adli Safwan)
Aceh Plans Refinery Industry and Product Certification
In addition to implementing the SRG system, the Aceh Government is preparing to strengthen the downstream sector through the establishment of a refinery industry. This step is considered important to enable Aceh to meet global market demands with higher quality standards.
Robby explained that the patchouli industry in Aceh must fulfill four main requirements to compete internationally. These include quality assurance, continuous supply availability, fair trading practices, and a digital traceability system.
"Quality assurance, supply continuity, fair trading practices, and digital traceability systems," he said.
According to him, meeting these standards requires a refinery industry capable of improving patchouli oil processing quality while strengthening product certification.
"To fulfill these requirements, Aceh clearly needs a refinery industry. Currently, the development of the patchouli industry in Aceh is still in the early stage of downstream development, namely planning the construction of a refinery. The key factors are a refinery industry and product certification through the SRG system," he said.
The Aceh Government will subsequently submit a proposal to the Ministry of Trade regarding the implementation of the SRG system for Aceh's patchouli commodity. In addition, the government will strengthen comprehensive assistance for patchouli farmers and encourage the establishment of an Aceh patchouli association or community.
Robby added that the government will also intensify cooperation among farmers, entrepreneurs, government institutions, universities, financial institutions, and the community. This collaboration is part of efforts to establish a modern, competitive, and export-oriented patchouli industry in Aceh.
"The Aceh Government will strengthen cooperation among government, business sectors, universities, financial institutions, and society to build a modern, competitive, and export-oriented patchouli industry ecosystem."
The Aceh Government is optimistic that improved management, downstream processing development, implementation of the SRG system, establishment of a refinery industry, and sustainable farmer support will strengthen the position of Aceh patchouli in the international market.
These measures are expected to create greater added value for patchouli products, improve farmers' incomes, and strengthen Aceh's role as one of the world's centers for producing high-quality patchouli oil.
"This will create greater added value, improve farmers' welfare, and strengthen Aceh's role as one of the world's centers for high-quality patchouli oil production," Robby said.
(IDNC)REPORTER: Adli Safwan | EDITOR: Fik Sagala