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Luhut suggests incense downstreaming to boost exports, local economies
Luhut highlighted the natural incense from North Sumatra, which is considered among the best in the world, exported to multiple countries in Asia and Europe.
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A woman works at a traditional incense stick factory in Malang, East Java on Feb. 2, 2018. (JP/Aman Rochman)
N
ational Economic Council (DEN) head Luhut Pandjaitan has suggested that the government develop a downstream incense industry as part of the country’s key export commodities and to strengthen the local economy.
The call is in line with the country’s greater plan to pursue downstreaming in commodities other than minerals, such as agriculture, plantations and fisheries, envisioned by President Prabowo Subianto.
“Our focus has been directed toward nickel and tin. But there is one commodity often being overlooked despite its great value and real impact on the people: incense,” Luhut wrote on his Instagram post on Friday.
He emphasized that downstreaming was not only about creating added value from natural resources, but also about transferring the economic benefits to regions where the resources originated.
Luhut highlighted the natural incense from North Sumatra, which is considered among the best in the world, exported to multiple countries in Asia and Europe.
The region produces resin from styrax benzoin, a substance used by various industries, including fragrances, food and pharmaceuticals, but Luhut said its price remained low at the farmer level.
Indonesia exported 43,000 tonnes of incense worth more than US$52 million last year. About 30 percent of people from North Tapanuli and Humbang Hasundutan in North Sumatra rely on the commodity, Luhut noted.
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