Govt explores ways to protect local ‘jamu’ producers from imports

The government will meet with various stakeholders in an effort to protect local producers of jamu (herbal medicine) facing fierce competition from imported remedies.

Industry Minister M.S. Hidayat said on Tuesday that officials from his ministry would meet with those from the Food and Drug Monitoring Agency (BPOM) and the jamu association to discuss the matter.

Last week, the agency confiscated a cache of 21 foreign brands of jamu products.

Hidayat said local producers had expressed dissatisfaction because foreign jamu products could easily enter the country.

“We plan to hold a meeting so that in the future, there will be a tighter control by BPOM in allowing foreign jamu products to enter the country,” he said on the sidelines of a four-day exhibition of cosmetics and jamu at the ministry.

Hidayat said that most of the jamu came from China and Malaysia.

He hoped that by introducing tighter controls, local producers would continue to have steady local market.

Meanwhile, the head of the Jamu Entrepreneurs Association (GP Jamu), Charles Saerang, said that foreign entrepreneurs saw potential in Indonesia because Indonesians were so brand-minded that they were easily tempted to buy any product, including jamu from abroad.

“What we can do now is compete with the influx of foreign jamu by creating easy access for local jamu to be exported abroad,” he said.

He said that Indonesia had a potential business turnover of up to Rp 25 trillion (US$2.7 billion).

“However, half of the amount is hijacked by illegally imported products, especially those related to aromatherapy and spas,” Charles said as quoted by businesses portal kontan.co.id.

Charles said further that the annual growth of the jamu business was around 10 percent.

“Next year, the growth might be between 5 and 10 percent,” he said.

According to Charles, local producers were under the supervision of the BPOM, which led to limited export opportunities.

“The BPOM is not internationally recognized because it is small in the health domain.

“Producers should be under the Industry Ministry’s supervision if they want to export their products,” he told reporters.

He added that the Health Ministry was well versed in the regulations for the national market but did not know how to safeguard jamu producers’ future business opportunities, especially when it came to expanding into foreign markets.

What happens now, “Exporting jamu from Indonesia, particularly to Western countries, is not practical because we have to send the products in two stages.”

He cited an example of exporting local jamu to the UK in which local exporters had to send the products to Malaysia before re-exporting them to the final destination.

Charles said that in 2012, trade between the 10 ASEAN 10 member states would be harmonized.

 “Discussion started several years ago but we are dissatisfied with the proposal,” he said.

He said jamu production in ASEAN should involve high technology, including fewer workers and a temperature-controlled room.

 “We cannot afford it because jamu production in Indonesia uses traditional techniques. This is ironic because compared to the other nine ASEAN countries, Indonesia is the largest jamu producer,” he said. (fem)