The Development of Aceh Patchouli Industry

Agro-Industry

The Development of Aceh Patchouli Industry

Property Description

According to a study, Aceh patchouli oil contains patchouli alcohol 30-34% with a yield of 3%, which makes it the best patchouli in the world.These areas are suitable for the development of the patchouli processing industry. Patchouli is one of Indonesia’s largest and important export commodities. This valuable essential oil is distilled from its dried leaves. This oil is widely used in various industries, especially the perfume, aromatherapy, cosmetics, medicine, toiletries, etc. industry where the demand continues to increase.

Market Opportunity

Patchouli is classified as one of Indonesia’s largest and important export commodities, due to its essential oil that is distilled from its dried leaves is used in some industries and (such as perfume, aromatherapy, cosmetics, medicine, toiletries). Currently, Indonesia is the world’s largest patchouli oil producer, which meets the needs of more than 80% of the world market. Patchouli is widely cultivated in Aceh. With its high patchouli alcohol content, patchouli is one of the most sought-after tropical plant varieties in Aceh The Government of Aceh Tamiang District has encouraged the increased high quality patchouli production volume in order to support the establishment of patchouli processing industry. Aceh patchouli has obtained a Geographical Indication Certificate in 2013 from the Ministry of Law and Human Rights.

Financial Estimation

Total Estimate:
USD 1,103,333 IRR/NPV/BEP:
USD 1,103,333