‘Jamu’ export reaches $10m annually

Friday, 12 February 2010

The Jakarta Post

Indonesia currently exports US$10 million worth of jamu traditional herbal medicine annually, while the domestic market value of jamu stands at $500 million.

The export figure was revealed by Trade Minister Mari Elka Pangestu before she laid the cornerstone for the construction of a factory producing jamu raw materials in Semarang, Central Java, on Wednesday.

“[The figures] are starkly different, but we are able to export jamu to a number of countries,” Mari said.

“It means our jamu is able to compete on the overseas market and it indicates our jamu has met the fixed standards of being safe, effective, beneficial and of high quality.”

She said in the free trade competition, the price of a product must be affordable and able to compete, forcing the producers to be innovative, such as by creating the right packaging and branding, reducing production costs, as well ensuring sustainable and efficient production.

“Producers must know where the raw materials come from and through what stages. They must think about retailers and end users,” she said.

“In the jamu sector, consumers must be aware of herbal and non-herbal medicines and their benefits.

Retailers must be honest and everyone must abide by the law.”

In response to the influx of Chinese medicines to Indonesia, Mari said the volume was still very small.

“I see it just from the aspects of unfair competition. Some illegal overseas products are also entering the country.”

Based on observations, overseas medicine can easily enter Indonesia due to cheap trade registration fees of only Rp 2.5 million per item for a five-year term.

PT Sido Muncul jamu producer general manager Irwan Hidayat has expressed complaints concerning the costly overseas trade requirements.

He said it costs US$2,500 just to sell a product item for a five-year term in Russia, while it costs $5,000 in China.

“We have sold our products to Hong Kong, Suriname, Singapore, Malaysia, Nigeria and in a number of Middle Eastern countries,” he said.

“I wish the government could help promote local products and stop changing the regulations.”

In response to the ASEAN-China Free Trade Agreement, Irwan said he was aware that it was just a matter of time and people should be ready to face it.

“Doctors must also help by prescribing herbal medicines in an effort to promote herbal drugs.”

Food and Drug Control Agency head Kustantinah said her office would immediately review regulations on requirements to market overseas medicines in Indonesia.

“IDI definitely supports the use of herbal medicines given their benefits and effectiveness,” Indonesian Doctors Association (IDI) chairman Priyo Sidi Pratomo said.

“Its safety has also been proven. I even believe that one day Indonesia will be independent in terms of medicine,” he said.

“The country is abundant with biological resources for raw materials for medicine.”