In a strategic move to enhance Indonesia’s agricultural and export sectors, Presidential Chief of Staff Moeldoko has called for the rapid establishment of kratom trade regulations. Moeldoko is currently serving as the Chief of Staff of the Presidency for President Joko Widodo. This initiative aims to create a robust legal framework and trade management system to protect farmers and businesses involved in kratom exportation.
Collaborative Efforts in Jakarta
A recent high-level meeting in Jakarta underscored the collaborative effort required to manage kratom trading effectively. The meeting included representatives from various ministries and agencies, including the Ministries of Economy, Finance, Trade, Cooperatives and MSMEs, Environment and Forestry, and the Agricultural Quarantine Agency. This impressive array of agencies highlights the cooperative approach needed to regulate kratom trade.
Economic Potential of Kratom
Kratom, primarily cultivated in West Kalimantan, a province on the island of Borneo, offers significant economic benefits to Indonesia. The region is home to millions of kratom trees, making it a significant contributor to the local economy. Moeldoko emphasized the importance of standardizing kratom exports to meet international health and safety standards, thereby avoiding rejections due to contamination.
Challenges and Voluntary Standards
Indonesian farmers have faced significant financial losses due to contaminated shipments being rejected by American buyers. In response, many kratom farmers and cooperatives have voluntarily implemented higher standards to ensure product quality. However, the Indonesian government has yet to set official standards for kratom exports.
Government Oversight and Future Directions
Since August 2022, the Presidential Staff Office has been overseeing the governance and trading procedures for kratom, following directives from President Joko Widodo. Despite the National Narcotics Board’s (BNN) previous calls to outlaw kratom, most government agencies do not support this approach. Instead, they favor regulation and oversight to harness kratom’s economic potential while ensuring public health and safety.
Global Kratom Market
Currently, Indonesia is the world’s largest supplier of kratom. The United States represents the primary consumer, purchasing 95% of its kratom supply from Indonesia. This significant market share underscores the importance of establishing clear regulations to maintain and expand Indonesia’s position in the global kratom market.
Thailand’s Kratom Legalization
Thailand decriminalized kratom on August 24, 2021, removing it from the list of controlled narcotics. This legislative change has allowed for the cultivation, possession, and sale of kratom, significantly boosting the local market. The domestic market is projected to be worth 600 million baht by next year, with potential for substantial growth in exports. The legalization has not only saved the Thai government millions in enforcement costs but also created new economic opportunities for farmers and entrepreneurs.
To ensure public health and safety, the Thai government has implemented measures to regulate the sale of kratom. These include restrictions on sales to minors and pregnant women, and requirements for licenses to import and export the plant. These regulations aim to prevent abuse while promoting the economic benefits of kratom.
Conclusion
The push for kratom trade regulations in Indonesia represents a necessary step towards boosting the country’s agricultural and export sectors. By establishing a proper legal framework and trade management system, Indonesia can protect its farmers, ensure product quality, and maintain its dominance in the global kratom market.