I would like to share with you about the "Spice Downstreaming Roadmap 2025-2045" or "Peta Jalan Hilirisasi Rempah 2025-2045" Document by BAPPENAS RI that has been published online recently. I watched the launch of the document in the end of 2025 on BAPPENAS's YouTube Channel, and I also shared the slide materials of the speakers and the event recording on my blog's post on this link: https://www.dzikrayuhasyra.com/2025/12/national-plantation-day-2025-and-spice.html Just in case you want to recall and re-learn from the event.
On this post, I want to share the PDF File of the Document, also some insights and keynotes from it. Here they are, happy learning and enjoying!
The document begins by reasserting Indonesia's historical and cultural identity as the "Mother of Spices." This title is not merely symbolic but rooted in a history where the archipelago's commodities, particularly nutmeg and cloves, were the primary drivers of global exploration and trade. These spices were once so valuable that they reshaped geopolitics, triggering massive ocean expeditions by European nations. A defining moment in this history was the Treaty of Breda in 1667, where the Dutch ceded Manhattan (New Amsterdam) to the British in exchange for the tiny Pulau Run in the Banda Islands, solely to secure a monopoly on nutmeg.
Building on this rich history, the roadmap is presented as a strategic manifesto to restore Indonesia’s position as a dominant player in the modern global supply chain. It aligns directly with the "Indonesia Emas 2045" vision, supporting the National Long-Term Development Plan (RPJPN) 2025-2045. The central theme is economic transformation through "hilirisasi" or downstreaming, shifting the nation's focus from merely exporting raw materials to producing high-value derivatives that create an inclusive and sustainable economy.
In terms of current global standing, Indonesia was ranked as the fourth-largest spice producer in the world in 2021, following India, China, and Nigeria, with a total production volume of 809,474 tons. However, a significant disparity exists between production volume and trade performance. In 2022, Indonesia ranked only 25th globally in export value, holding a mere 0.65% share of the global export market. This position lags considerably behind market leaders like India, which commands 17.2%, and China at 16.6%, highlighting a critical need for strategic intervention.
A major factor contributing to this low export ranking is the dominance of raw material exports. The majority of Indonesia's spice exports are unprocessed, which limits the value captured by domestic industries. Furthermore, the country has a high level of domestic consumption, ranking just below India, Nigeria, China, and Ethiopia. This internal demand for food, traditional medicine, and industry absorbs a vast amount of production, reducing the surplus available for international trade compared to other major producers.
Looking at global trends, the document notes that spice consumption is projected to grow annually by 0.8%, reaching 11.3 million metric tons by 2028. The demand landscape is shifting; it is no longer driven solely by culinary uses but increasingly by the need for natural ingredients in health supplements, aromatherapy, and food preservation. This global shift towards natural and sustainable products presents a golden opportunity for Indonesia to supply high-quality spice derivatives.
Focusing on specific commodities, Indonesia stands as the world's second-largest producer of nutmeg after India but possesses the largest cultivated area, covering 270,660 hectares in 2022. Despite this extensive land use, productivity remains a significant challenge, currently sitting at only 0.16 tons per hectare. This ranks Indonesia 21st globally in productivity, while competitors like Malaysia and Sri Lanka achieve levels exceeding 1 ton per hectare, indicating immense room for improvement.
The biodiversity of Indonesian nutmeg is a key competitive advantage. The roadmap highlights distinct varieties such as the Banda variety, which is prized for its high essential oil content of up to 21.71% and a quick flowering period of just three years. Other significant varieties include Ternate 1, Tidore 1, and the unique Myristica argentea, or Papuan nutmeg, from Fakfak. This specific variety has a distinct flavor profile and is economically vital for the local communities in Papua.
However, nutmeg cultivation faces structural issues, particularly in regions like Fakfak where "forest farming" is common. In this traditional method, trees grow naturally without human intervention, resulting in a high ratio of male trees—approximately 40%—which do not produce fruit. This significantly lowers overall yield. The roadmap suggests implementing grafting techniques to ensure a higher population of productive female trees and standardizing cultivation practices.
To capture more value, the document envisions a shift from exporting whole nutmeg seeds to processing derivatives. The flesh of the nutmeg fruit, which is often discarded as waste, has the potential to be processed into jams, syrups, and candies. More importantly, high-value derivatives such as essential oils, oleoresins, and nutmeg butter are identified as critical products for the pharmaceutical and cosmetic industries, moving the industry up the value chain.
Geographical Indications (GI) play a crucial role in protecting the brand value of these unique varieties. several GIs have been registered, including Pala Dukono from North Halmahera, Pala Kepulauan Banda from Maluku, Pala Siau from North Sulawesi, and Pala Tomandin Fakfak from West Papua. These certifications are essential marketing tools that allow Indonesian products to command premium prices by distinguishing their unique characteristics in the global market.
Moving to pepper, Indonesia remains a major global producer, with key production centers in Lampung for black pepper and Bangka Belitung for Muntok white pepper. Trade data from 2022 reveals that 54.4% of pepper exports were whole white pepper and 34.1% were whole black pepper. This statistic underscores that the majority of the trade is still in raw, unprocessed form, similar to the situation with nutmeg.
Innovation in pepper cultivation is being driven by the development of superior varieties. The roadmap highlights varieties such as Petaling 1 and 2, Natar 1 and 2, and Chunuk. A standout mention is the Malonan 1 variety, which offers high productivity of up to 2.17 tons per hectare. Additionally, Piper retrofractum, or Javanese Long Pepper (Cabai Jawa), is discussed as a distinct commodity with significant potential in the herbal medicine sector.
Pepper farming is capital-intensive and fraught with challenges, particularly due to the cost of climbing poles (tajar) and susceptibility to diseases. Farmers face significant threats from stem rot disease caused by Phytophthora capsici, which can decimate entire plantations. As a sustainable solution, the roadmap proposes grafting commercial pepper vines onto Melada rootstock, a related species that is naturally resistant to stem rot.
Muntok White Pepper is recognized as a premium brand globally, known for its spicy flavor and aroma. To improve farmer welfare in this sector, the roadmap cites the revitalization of the Muntok Pepper Cooperative. The strategy involves using a "Single Desk Marketing" approach, which empowers farmers to collectively determine prices rather than being at the mercy of volatile international reference prices.
To increase efficiency and sustainability, the document promotes Integrated Farming Systems (IFS). A case study in East Kalimantan demonstrates the success of combining pepper plantations with Etawa goat farming. In this system, goats provide manure for organic fertilizer, while pepper trimmings serve as animal feed. This closed-loop system reduces operational costs and improves the ecological footprint of the farms.
In the clove sector, Indonesia is the undisputed leader, accounting for approximately 73% of the global supply with a production of 133,955 tons in 2022. This volume far exceeds that of Madagascar, the second-largest producer. Major production hubs are located in Central Sulawesi, North Sulawesi, and Maluku, solidifying the country's status as the home of cloves.
A unique characteristic of the Indonesian clove market is the massive absorption by the domestic cigarette industry. It is estimated that 80-90% of domestic production, roughly 85,000 to 120,000 tons annually, is used by the kretek industry. This leaves only a small fraction available for food, beverages, or export, creating a distinct market dynamic compared to other spice-producing nations.
Despite leading in volume, Indonesia's clove productivity of 0.24 tons per hectare is lower than competitors like China and Kenya. The sector is also plagued by specific health issues, notably the Sumatra Disease (BPKC - Bakteri Pembuluh Kayu Cengkeh), which destroys the vascular system of the trees. The roadmap calls for rigorous sanitation protocols and the distribution of disease-resistant seeds to combat this threat.
High-yield clove varieties are central to revitalizing the sector. The roadmap points to varieties like Zanzibar Karo, which is noted for its high essential oil content ranging from 19.94% to 23.00%. Other historically significant varieties include Afo, believed to be the oldest clove variety in the world from Ternate, and Tuni Bursel from South Buru, which has a potential yield of nearly 40kg of dry flowers per tree annually.
The downstream strategy for cloves emphasizes the extraction of clove oil and its primary derivative, eugenol. Eugenol is a critical compound for the flavor, fragrance, and pharmaceutical industries, used in everything from dental analgesics to vanillin synthesis. Investing in fractionation technology to produce high-purity eugenol is identified as a key step to increasing export value.
Regarding cinnamon, Indonesia is a top producer of Cinnamomum burmannii (Cassia), primarily grown in Jambi (Kerinci) and West Sumatra. This variety is distinct from Ceylon cinnamon (C. verum) as it is thicker and has a different flavor profile. In 2022, Indonesia produced 51,667 tons, ranking third globally, but faces competition from Vietnam and China.
A critical market hurdle for Indonesian Cassia is its high coumarin content. Coumarin can be hepatotoxic in large doses, limiting the use of Cassia in certain health-conscious markets that prefer the lower-coumarin Ceylon cinnamon. The roadmap suggests improving post-harvest processing to control coumarin levels and conducting research to mitigate this issue to expand market access.
The "Koerintji Cinnamon" variety from Jambi has received Geographical Indication status and is a standout product. It is renowned for its high essential oil content and thick bark, which becomes spicier and sweeter as the tree ages. This variety is marketed globally as "Padang Cassia" and represents a premium export commodity that differentiates Indonesian cinnamon from generic cassia.
Export dynamics for cinnamon reveal a loss of potential value. The United States is the largest importer, followed by Vietnam. The document notes that Vietnam often imports raw Indonesian cinnamon to process and re-export, essentially capturing the value-added margin that should remain in Indonesia. The roadmap aims to recapture this by developing domestic processing capabilities.
Vanilla, often referred to as "Green Gold," is another high-value crop where Indonesia ranks as the second-largest producer after Madagascar. Indonesian vanilla, mostly Vanilla planifolia, is prized for its complex, woody, and smoky flavor profile. This profile is distinct from the creamy characteristics of Madagascar vanilla, offering a unique selling point in the global market.
However, vanilla productivity is hindered by social and security issues. Farmers often harvest beans prematurely before they reach full maturity due to a fear of theft. This practice results in low vanillin content and poor-quality beans. The roadmap suggests strengthening community security measures and forming cooperatives to protect farmers and ensure beans are harvested at peak maturity.
Superior vanilla varieties are being developed to address agronomic challenges. The document highlights varieties like Vania 1 and Vania 2, which are tolerant to Fusarium stem rot, a major disease. Another key variety is Alor Vanilla from East Nusa Tenggara, which boasts a high vanillin content of 2.32-2.85% and thrives in the unique agro-climate of the Alor Islands.
Alor Vanilla also holds a Geographical Indication and is grown organically using traditional methods. The specific curing process used in Alor produces beans with a distinct aroma that commands premium prices. The roadmap encourages the replication of this success by promoting organic certification and traditional curing methods in other regions.
Temulawak, or Java Ginger (Curcuma xanthorrhiza), is designated as a featured medicinal plant and promoted as the "Ginseng of Indonesia." It contains active compounds like curcumin and xanthorrhizol, which are beneficial for liver health and immunity. The roadmap aims to elevate Temulawak from a traditional remedy to a global icon of Indonesian wellness (Jamu).
East Java is the largest producer of Temulawak, contributing significantly to national output. However, cultivation is often traditional and intercropped, leading to inconsistent supply and quality. The roadmap aims to standardize cultivation practices to meet the growing industrial demand for herbal medicine and functional foods, ensuring a reliable supply chain.
To formulate its strategy, the roadmap benchmarks successful international models. The Spices Board of India is cited as a prime example of effective governance. India regulates 52 spices, provides e-platforms for auctions, and supports farmers with testing labs and R&D. Indonesia aims to emulate this by creating a stronger regulatory framework and specific bodies to oversee the spice sector.
Sri Lanka provides a benchmark for branding success. Its strict grading systems and "Pure Ceylon Cinnamon" certification allow it to command premium prices and protect its market from lower-quality substitutes. The document notes that Indonesia should adopt similar strict grading and certification strategies to protect its premium spice brands.
Madagascar serves as a benchmark for the vanilla industry. Despite facing challenges like theft, Madagascar dominates the market through labor-intensive pollination and a robust traceability system that involves marking green beans with individual codes. Indonesia considers adopting similar traceability measures to prevent theft and ensure the authenticity of its vanilla.
The roadmap is structured into four phases, starting with Phase 1 (2025-2029). This phase focuses on strengthening the foundation by improving productivity through Good Agricultural Practices (GAP). It includes a massive replanting program to replace aging trees and the establishment of primary processing hubs to reduce the export of raw materials.
Phase 2 (2030-2034) shifts the focus to diversification and innovation. This involves commercializing research into high-value derivatives, such as specific isolates for the cosmetic industry. It also includes strengthening the branding of Indonesian spices and utilizing digital technology for precision farming to increase efficiency.
Phase 3 (2035-2039) aims for global market expansion. The goal is to establish Indonesia as a dominant player with a robust downstream industry that processes spices into finished consumer goods. This phase will be supported by international trade cooperation and investment in processing facilities abroad to get closer to the end consumer.
The final phase, Phase 4 (2040-2045), focuses on "New Growth Paths." Indonesia envisions leading in innovation, sustainability, and high-tech spice applications. This includes advanced uses in pharmaceuticals and functional foods, cementing its status as the world's top producer of key spices and a leader in the global bio-economy.
A critical enabler for this roadmap is the implementation of digital traceability. Global markets increasingly demand full transparency. Currently, data at the Indonesian farm level is manual and fragmented. The roadmap proposes implementing blockchain-based traceability systems to track spices from the farm to the export gate, ensuring safety and quality for international buyers.
The downstreaming strategy, or "hilirisasi," is the core economic engine. The plan is to move from selling raw beans or bark to selling essential oils, oleoresins, and isolates like eugenol and vanillin. This requires significant investment in domestic extraction and fractionation technology, which is currently a gap in the industrial landscape.
Collaboration is framed through a "Quadruple Helix" model involving the Government, Academics, Business, and the Community. The National Research and Innovation Agency (BRIN) is highlighted as a key player in consolidating research to support industrial needs, bridging the gap between scientific findings and commercial application.
To support these initiatives, a dedicated financing framework will be developed. This will combine the state budget (APBN), private investment, and blended finance mechanisms. The plan mentions optimizing Micro Business Credit (KUR) for farmers and exploring "Green Financing" for sustainable spice projects to attract global investors interested in ESG compliance.
Halal certification is also emphasized as a strategic marketing tool. The roadmap views Halal certification for spice derivatives not just as a religious compliance requirement but as a badge of quality and hygiene.This certification appeals to premium markets in both Muslim and non-Muslim countries, expanding the potential consumer base.
Sustainability is woven throughout the roadmap, with strategies for climate resilience. This includes using drought-tolerant varieties and regenerative farming practices, such as integrating livestock with pepper farming. These measures are crucial to ensure long-term viability against the threats of climate change, which cause erratic harvest cycles.
Finally, the roadmap sets ambitious targets for 2029 against a 2022 baseline. It aims for export growth of 8.85% for Nutmeg, 19.53% for Pepper, 10.53% for Clove, 8.30% for Cinnamon, 21.18% for Vanilla, and 3.15% for Temulawak. Alongside export growth, productivity targets are equally aggressive, aiming to increase yields by nearly 50% for several commodities through better farming techniques and superior seeds.
Building on this rich history, the roadmap is presented as a strategic manifesto to restore Indonesia’s position as a dominant player in the modern global supply chain. It aligns directly with the "Indonesia Emas 2045" vision, supporting the National Long-Term Development Plan (RPJPN) 2025-2045. The central theme is economic transformation through "hilirisasi" or downstreaming, shifting the nation's focus from merely exporting raw materials to producing high-value derivatives that create an inclusive and sustainable economy.
In terms of current global standing, Indonesia was ranked as the fourth-largest spice producer in the world in 2021, following India, China, and Nigeria, with a total production volume of 809,474 tons. However, a significant disparity exists between production volume and trade performance. In 2022, Indonesia ranked only 25th globally in export value, holding a mere 0.65% share of the global export market. This position lags considerably behind market leaders like India, which commands 17.2%, and China at 16.6%, highlighting a critical need for strategic intervention.
A major factor contributing to this low export ranking is the dominance of raw material exports. The majority of Indonesia's spice exports are unprocessed, which limits the value captured by domestic industries. Furthermore, the country has a high level of domestic consumption, ranking just below India, Nigeria, China, and Ethiopia. This internal demand for food, traditional medicine, and industry absorbs a vast amount of production, reducing the surplus available for international trade compared to other major producers.
Looking at global trends, the document notes that spice consumption is projected to grow annually by 0.8%, reaching 11.3 million metric tons by 2028. The demand landscape is shifting; it is no longer driven solely by culinary uses but increasingly by the need for natural ingredients in health supplements, aromatherapy, and food preservation. This global shift towards natural and sustainable products presents a golden opportunity for Indonesia to supply high-quality spice derivatives.
Focusing on specific commodities, Indonesia stands as the world's second-largest producer of nutmeg after India but possesses the largest cultivated area, covering 270,660 hectares in 2022. Despite this extensive land use, productivity remains a significant challenge, currently sitting at only 0.16 tons per hectare. This ranks Indonesia 21st globally in productivity, while competitors like Malaysia and Sri Lanka achieve levels exceeding 1 ton per hectare, indicating immense room for improvement.
The biodiversity of Indonesian nutmeg is a key competitive advantage. The roadmap highlights distinct varieties such as the Banda variety, which is prized for its high essential oil content of up to 21.71% and a quick flowering period of just three years. Other significant varieties include Ternate 1, Tidore 1, and the unique Myristica argentea, or Papuan nutmeg, from Fakfak. This specific variety has a distinct flavor profile and is economically vital for the local communities in Papua.
However, nutmeg cultivation faces structural issues, particularly in regions like Fakfak where "forest farming" is common. In this traditional method, trees grow naturally without human intervention, resulting in a high ratio of male trees—approximately 40%—which do not produce fruit. This significantly lowers overall yield. The roadmap suggests implementing grafting techniques to ensure a higher population of productive female trees and standardizing cultivation practices.
To capture more value, the document envisions a shift from exporting whole nutmeg seeds to processing derivatives. The flesh of the nutmeg fruit, which is often discarded as waste, has the potential to be processed into jams, syrups, and candies. More importantly, high-value derivatives such as essential oils, oleoresins, and nutmeg butter are identified as critical products for the pharmaceutical and cosmetic industries, moving the industry up the value chain.
Geographical Indications (GI) play a crucial role in protecting the brand value of these unique varieties. several GIs have been registered, including Pala Dukono from North Halmahera, Pala Kepulauan Banda from Maluku, Pala Siau from North Sulawesi, and Pala Tomandin Fakfak from West Papua. These certifications are essential marketing tools that allow Indonesian products to command premium prices by distinguishing their unique characteristics in the global market.
Moving to pepper, Indonesia remains a major global producer, with key production centers in Lampung for black pepper and Bangka Belitung for Muntok white pepper. Trade data from 2022 reveals that 54.4% of pepper exports were whole white pepper and 34.1% were whole black pepper. This statistic underscores that the majority of the trade is still in raw, unprocessed form, similar to the situation with nutmeg.
Innovation in pepper cultivation is being driven by the development of superior varieties. The roadmap highlights varieties such as Petaling 1 and 2, Natar 1 and 2, and Chunuk. A standout mention is the Malonan 1 variety, which offers high productivity of up to 2.17 tons per hectare. Additionally, Piper retrofractum, or Javanese Long Pepper (Cabai Jawa), is discussed as a distinct commodity with significant potential in the herbal medicine sector.
Pepper farming is capital-intensive and fraught with challenges, particularly due to the cost of climbing poles (tajar) and susceptibility to diseases. Farmers face significant threats from stem rot disease caused by Phytophthora capsici, which can decimate entire plantations. As a sustainable solution, the roadmap proposes grafting commercial pepper vines onto Melada rootstock, a related species that is naturally resistant to stem rot.
Muntok White Pepper is recognized as a premium brand globally, known for its spicy flavor and aroma. To improve farmer welfare in this sector, the roadmap cites the revitalization of the Muntok Pepper Cooperative. The strategy involves using a "Single Desk Marketing" approach, which empowers farmers to collectively determine prices rather than being at the mercy of volatile international reference prices.
To increase efficiency and sustainability, the document promotes Integrated Farming Systems (IFS). A case study in East Kalimantan demonstrates the success of combining pepper plantations with Etawa goat farming. In this system, goats provide manure for organic fertilizer, while pepper trimmings serve as animal feed. This closed-loop system reduces operational costs and improves the ecological footprint of the farms.
In the clove sector, Indonesia is the undisputed leader, accounting for approximately 73% of the global supply with a production of 133,955 tons in 2022. This volume far exceeds that of Madagascar, the second-largest producer. Major production hubs are located in Central Sulawesi, North Sulawesi, and Maluku, solidifying the country's status as the home of cloves.
A unique characteristic of the Indonesian clove market is the massive absorption by the domestic cigarette industry. It is estimated that 80-90% of domestic production, roughly 85,000 to 120,000 tons annually, is used by the kretek industry. This leaves only a small fraction available for food, beverages, or export, creating a distinct market dynamic compared to other spice-producing nations.
Despite leading in volume, Indonesia's clove productivity of 0.24 tons per hectare is lower than competitors like China and Kenya. The sector is also plagued by specific health issues, notably the Sumatra Disease (BPKC - Bakteri Pembuluh Kayu Cengkeh), which destroys the vascular system of the trees. The roadmap calls for rigorous sanitation protocols and the distribution of disease-resistant seeds to combat this threat.
High-yield clove varieties are central to revitalizing the sector. The roadmap points to varieties like Zanzibar Karo, which is noted for its high essential oil content ranging from 19.94% to 23.00%. Other historically significant varieties include Afo, believed to be the oldest clove variety in the world from Ternate, and Tuni Bursel from South Buru, which has a potential yield of nearly 40kg of dry flowers per tree annually.
The downstream strategy for cloves emphasizes the extraction of clove oil and its primary derivative, eugenol. Eugenol is a critical compound for the flavor, fragrance, and pharmaceutical industries, used in everything from dental analgesics to vanillin synthesis. Investing in fractionation technology to produce high-purity eugenol is identified as a key step to increasing export value.
Regarding cinnamon, Indonesia is a top producer of Cinnamomum burmannii (Cassia), primarily grown in Jambi (Kerinci) and West Sumatra. This variety is distinct from Ceylon cinnamon (C. verum) as it is thicker and has a different flavor profile. In 2022, Indonesia produced 51,667 tons, ranking third globally, but faces competition from Vietnam and China.
A critical market hurdle for Indonesian Cassia is its high coumarin content. Coumarin can be hepatotoxic in large doses, limiting the use of Cassia in certain health-conscious markets that prefer the lower-coumarin Ceylon cinnamon. The roadmap suggests improving post-harvest processing to control coumarin levels and conducting research to mitigate this issue to expand market access.
The "Koerintji Cinnamon" variety from Jambi has received Geographical Indication status and is a standout product. It is renowned for its high essential oil content and thick bark, which becomes spicier and sweeter as the tree ages. This variety is marketed globally as "Padang Cassia" and represents a premium export commodity that differentiates Indonesian cinnamon from generic cassia.
Export dynamics for cinnamon reveal a loss of potential value. The United States is the largest importer, followed by Vietnam. The document notes that Vietnam often imports raw Indonesian cinnamon to process and re-export, essentially capturing the value-added margin that should remain in Indonesia. The roadmap aims to recapture this by developing domestic processing capabilities.
Vanilla, often referred to as "Green Gold," is another high-value crop where Indonesia ranks as the second-largest producer after Madagascar. Indonesian vanilla, mostly Vanilla planifolia, is prized for its complex, woody, and smoky flavor profile. This profile is distinct from the creamy characteristics of Madagascar vanilla, offering a unique selling point in the global market.
However, vanilla productivity is hindered by social and security issues. Farmers often harvest beans prematurely before they reach full maturity due to a fear of theft. This practice results in low vanillin content and poor-quality beans. The roadmap suggests strengthening community security measures and forming cooperatives to protect farmers and ensure beans are harvested at peak maturity.
Superior vanilla varieties are being developed to address agronomic challenges. The document highlights varieties like Vania 1 and Vania 2, which are tolerant to Fusarium stem rot, a major disease. Another key variety is Alor Vanilla from East Nusa Tenggara, which boasts a high vanillin content of 2.32-2.85% and thrives in the unique agro-climate of the Alor Islands.
Alor Vanilla also holds a Geographical Indication and is grown organically using traditional methods. The specific curing process used in Alor produces beans with a distinct aroma that commands premium prices. The roadmap encourages the replication of this success by promoting organic certification and traditional curing methods in other regions.
Temulawak, or Java Ginger (Curcuma xanthorrhiza), is designated as a featured medicinal plant and promoted as the "Ginseng of Indonesia." It contains active compounds like curcumin and xanthorrhizol, which are beneficial for liver health and immunity. The roadmap aims to elevate Temulawak from a traditional remedy to a global icon of Indonesian wellness (Jamu).
East Java is the largest producer of Temulawak, contributing significantly to national output. However, cultivation is often traditional and intercropped, leading to inconsistent supply and quality. The roadmap aims to standardize cultivation practices to meet the growing industrial demand for herbal medicine and functional foods, ensuring a reliable supply chain.
To formulate its strategy, the roadmap benchmarks successful international models. The Spices Board of India is cited as a prime example of effective governance. India regulates 52 spices, provides e-platforms for auctions, and supports farmers with testing labs and R&D. Indonesia aims to emulate this by creating a stronger regulatory framework and specific bodies to oversee the spice sector.
Sri Lanka provides a benchmark for branding success. Its strict grading systems and "Pure Ceylon Cinnamon" certification allow it to command premium prices and protect its market from lower-quality substitutes. The document notes that Indonesia should adopt similar strict grading and certification strategies to protect its premium spice brands.
Madagascar serves as a benchmark for the vanilla industry. Despite facing challenges like theft, Madagascar dominates the market through labor-intensive pollination and a robust traceability system that involves marking green beans with individual codes. Indonesia considers adopting similar traceability measures to prevent theft and ensure the authenticity of its vanilla.
The roadmap is structured into four phases, starting with Phase 1 (2025-2029). This phase focuses on strengthening the foundation by improving productivity through Good Agricultural Practices (GAP). It includes a massive replanting program to replace aging trees and the establishment of primary processing hubs to reduce the export of raw materials.
Phase 2 (2030-2034) shifts the focus to diversification and innovation. This involves commercializing research into high-value derivatives, such as specific isolates for the cosmetic industry. It also includes strengthening the branding of Indonesian spices and utilizing digital technology for precision farming to increase efficiency.
Phase 3 (2035-2039) aims for global market expansion. The goal is to establish Indonesia as a dominant player with a robust downstream industry that processes spices into finished consumer goods. This phase will be supported by international trade cooperation and investment in processing facilities abroad to get closer to the end consumer.
The final phase, Phase 4 (2040-2045), focuses on "New Growth Paths." Indonesia envisions leading in innovation, sustainability, and high-tech spice applications. This includes advanced uses in pharmaceuticals and functional foods, cementing its status as the world's top producer of key spices and a leader in the global bio-economy.
A critical enabler for this roadmap is the implementation of digital traceability. Global markets increasingly demand full transparency. Currently, data at the Indonesian farm level is manual and fragmented. The roadmap proposes implementing blockchain-based traceability systems to track spices from the farm to the export gate, ensuring safety and quality for international buyers.
The downstreaming strategy, or "hilirisasi," is the core economic engine. The plan is to move from selling raw beans or bark to selling essential oils, oleoresins, and isolates like eugenol and vanillin. This requires significant investment in domestic extraction and fractionation technology, which is currently a gap in the industrial landscape.
Collaboration is framed through a "Quadruple Helix" model involving the Government, Academics, Business, and the Community. The National Research and Innovation Agency (BRIN) is highlighted as a key player in consolidating research to support industrial needs, bridging the gap between scientific findings and commercial application.
To support these initiatives, a dedicated financing framework will be developed. This will combine the state budget (APBN), private investment, and blended finance mechanisms. The plan mentions optimizing Micro Business Credit (KUR) for farmers and exploring "Green Financing" for sustainable spice projects to attract global investors interested in ESG compliance.
Halal certification is also emphasized as a strategic marketing tool. The roadmap views Halal certification for spice derivatives not just as a religious compliance requirement but as a badge of quality and hygiene.This certification appeals to premium markets in both Muslim and non-Muslim countries, expanding the potential consumer base.
Sustainability is woven throughout the roadmap, with strategies for climate resilience. This includes using drought-tolerant varieties and regenerative farming practices, such as integrating livestock with pepper farming. These measures are crucial to ensure long-term viability against the threats of climate change, which cause erratic harvest cycles.
Finally, the roadmap sets ambitious targets for 2029 against a 2022 baseline. It aims for export growth of 8.85% for Nutmeg, 19.53% for Pepper, 10.53% for Clove, 8.30% for Cinnamon, 21.18% for Vanilla, and 3.15% for Temulawak. Alongside export growth, productivity targets are equally aggressive, aiming to increase yields by nearly 50% for several commodities through better farming techniques and superior seeds.
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