Infiltrating Essential Oil Market

Various techniques were done by refiners to market essential oils. On production phase, Rahmad Hidayat Syam, a refiner in Cikereteg, Bogor Regency, is building cooperation with 10 agents who are supplying raw material. Hidayat provides refinery facility and also buys their oils. Every month he routinely obtains 5-6 tonnes of nutmeg oil. Valued at IDR450.000 per kg, he earned IDR2,25-billionIDR2,70-billion a month. His net profit is IDR70.000 per kg or IDR350-million a month.

A different strategy is applied by Eko Wibowo, a refiner in Cianjur, West Java. He provides around 20 kinds of essential oil such as clove leaf oil, clove stalk oil, clove flower oil, vetiver oil, patchouli oil, and nutmeg oil. He is able to fulfill any demand for all kinds of essential oil. ‘By having various essential oil, we will be easy to find market,’ said the man who was born on January 15^th, 1976.

The diversities of essential oil that he trades are also to minimize loss as cross subsidy is possible among those oils. Eko has experienced it in 2005 when the price of patchouli oil dropped to IDR150.000 per kg from IDR400.000, while the selling price of clove oil was in fact pull the price to IDR50.000 from IDR35.000 per kg. Other tips to market essential oil are by visiting the embassies, sending samples to exporters, or entrusting samples to a friend who is studying abroad

Infiltrating Essential Oil Market

Various techniques were done by refiners to market essential oils. On production phase, Rahmad Hidayat Syam, a refiner in Cikereteg, Bogor Regency, is building cooperation with 10 agents who are supplying raw material. Hidayat provides refinery facility and also buys their oils. Every month he routinely obtains 5-6 tonnes of nutmeg oil. Valued at IDR450.000 per kg, he earned IDR2,25-billionIDR2,70-billion a month. His net profit is IDR70.000 per kg or IDR350-million a month.

A different strategy is applied by Eko Wibowo, a refiner in Cianjur, West Java. He provides around 20 kinds of essential oil such as clove leaf oil, clove stalk oil, clove flower oil, vetiver oil, patchouli oil, and nutmeg oil. He is able to fulfill any demand for all kinds of essential oil. ‘By having various essential oil, we will be easy to find market,’ said the man who was born on January 15^th, 1976.

The diversities of essential oil that he trades are also to minimize loss as cross subsidy is possible among those oils. Eko has experienced it in 2005 when the price of patchouli oil dropped to IDR150.000 per kg from IDR400.000, while the selling price of clove oil was in fact pull the price to IDR50.000 from IDR35.000 per kg. Other tips to market essential oil are by visiting the embassies, sending samples to exporters, or entrusting samples to a friend who is studying abroad.

Kaffir Oil As the Source of Income

When the furnaces of patchouli oil producers were extinguished as the oil price was drop, Samsudin's furnace kept on smoldering. The reason is he turns to distill kaffir lime oil. The 42 years old man produces 9 kg of Citrus hystrix oil every day. He valued the oil IDR600.000-IDR700.000/kg, thus he earned an IDR5,4 million-IDR6,3 million turnover in a day or IDR162-million-IDR189-million/month.

Despite so, it does not mean that producing kaffir lime oil is without obstacle. One of the obstacles is the quality of raw material. The raw material should be old leaves. Growers, however, are reluctant to fulfill it since it gives them difficulties while harvesting. They also do not want to suffer loss, which is understandably since old leaves are lighter so that they received smaller income. Accordingly, the yield is low. Another obstacle is stagnant supply as the effect of emulating with basic necessity as seasoning, particularly during great months in Javanese calendar.

Essential Oils Worth IDR 140-millions/kg

Lajagua Alpinia malaccensis is not a familiar name since it grows wild at forest side and ridge so that it is rarely taken into account. Eko Wibowo, a distiller in Ciherang, Cianjur Regency, West Java, however, process the rhizome of lajagua into 600 kg of lajagua oil per month. Sold at IDR280.000-IDR300.000 per kg, he gained a minimum IDR168-million turnover.

The yield obtained through distillation reaches 2% or at least it takes 50 kg of raw material to produce a liter of oil. With total production cost IDR250.000 per kg, his net profit is IDR18-million per month. A bigger margin is gained by roses and jasmine oil distillers. For example is Suryatmi, a distiller in Central Java, who distills 2-3 liters of jasmine and rose oil. She only distills whenever an order comes which is once in two months on the average.

With selling price IDR20-millions-IDR30-millions per liter, she gains IDR36-million net profit. According to Suryatmi the production cost per kg of oil is “only” IDR12-millions. The yield of jasmine oil is 0,1%. Accordingly, to obtain 1 liter it requires 1 ton of fresh flowers. The selling price of rose oil is in fact much more ravishing, i. e., IDR140-millions for Damaszener rose Rosa damascena at distiller level.

Lajagua and jasmine are merely some of new material for essential oil. In some places, there can be found distillers who produce various “new” commodity such as the flowers of fennel, the leaves of cubeb pepper, betel, and cinnamon bark. Those commodities have log grown in Indonesia, and only since recently they are distilled. (Sardi Duryatmo)