Indonesia President Steps In to Regulate Kratom Exports: Here’s the Plan

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ONE-KRATOM.COM, The Indonesian government, led by the President, is set to implement stricter regulations on the trade and export of kratom. This initiative aims to improve the quality and value of kratom exports while protecting local farmers. According to the Minister of Trade, the new regulations will require all kratom exporters to register with the Ministry of Trade. This decision follows a high-level meeting held at the Presidential Palace on June 20, 2024.

Currently, kratom exports operate under a free-trade system, with minimal oversight. This lack of regulation has resulted in poor-quality products reaching international markets, which negatively impacts prices. “Kratom has been exported freely, but the quality is poor, and the price is low. Today’s meeting decided that we need to regulate kratom’s trade practices so that registered exporters can meet controlled quality standards,” the Minister stated.

The new regulations aim to standardize kratom exports, ensuring that only high-quality products reach global markets. This initiative will benefit kratom farmers by increasing the value of their crops. “Right now, farmers can export, but the quality and quantity are inconsistent. This leads to low prices and losses for farmers. By regulating exports, we aim to protect their interests,” The Minister explained.

Under the upcoming rules, kratom exporters will be required to register with the Ministry of Trade. This registry system will allow the government to monitor and control kratom exports more effectively. Only registered exporters will be permitted to trade internationally, ensuring compliance with new quality standards.

Additionally, the Presidential Chief of Staff highlighted three key issues addressed during the high-level meeting. The first issue focuses on kratom cultivation management. There is currently no standardized cultivation process, leading to inconsistent quality in exported kratom. Establishing cultivation guidelines will help ensure uniform quality and improve the reputation of Indonesian kratom in global markets.

The second issue discussed pertains to trade governance. Clear regulations are needed to establish fair and transparent trade practices. By setting clear rules, the government aims to prevent exploitation and ensure that all stakeholders—farmers, processors, and exporters—benefit from kratom’s economic potential. This framework will also address concerns about unregulated exports that harm Indonesia’s international reputation.

The third issue involves the classification of kratom. There is an ongoing debate between the National Narcotics Agency (BNN) and research findings from the National Research and Innovation Agency (BRIN). While BNN views kratom as potentially harmful, BRIN’s research indicates that more scientific evidence is needed before classifying it as a narcotic. This difference in perspective highlights the need for further research and a balanced policy approach.

The regulation also intends to enhance Indonesia’s reputation in the global kratom market. By controlling export standards, the government hopes to address issues faced by Indonesian kratom in foreign markets, such as shipment rejections due to quality concerns. This move is expected to open new opportunities for Indonesian kratom, making it more competitive globally.

The President involvement underscores the strategic importance of kratom as a potential economic asset. The government is committed to supporting kratom farmers by providing a more stable and profitable market. This initiative is part of a broader effort to maximize the value of Indonesia’s natural resources through improved regulatory frameworks and quality controls.

Overall, this regulatory overhaul signifies a major step forward for Indonesia’s kratom industry. By enforcing strict quality standards, requiring exporter registration, and addressing cultivation and trade governance, the government aims to protect farmers, enhance product value, and strengthen Indonesia’s presence in the global market. This initiative aligns with The President’s vision of optimizing Indonesia’s natural resources for long-term economic development.

Indonesian Health Minister Clarifies Kratom’s Status: Not a Narcotic

Menteri Kesehatan, Budi Gunadi Sadikin
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ONE-KRATOM.COM, The Indonesian Minister of Health, has emphasized that kratom is currently not classified as a Schedule I narcotic in Indonesia. This position aligns with global guidelines, particularly those set by the World Health Organization (WHO). According to the Minister, the WHO’s stance is heavily influenced by recommendations from the United Nations Office on Drugs and Crime (UNODC), which has yet to find sufficient evidence to categorize kratom as a highly controlled substance.

UNODC’s ongoing assessment highlights the need for more comprehensive research before making any definitive classification. Given this, the WHO has advised the Indonesian Ministry of Health to await the results of further scientific studies. These studies are expected to provide more conclusive data regarding kratom’s potential risks and benefits, which could then inform any future decisions on its legal status.

“The Ministry of Health follows the guidelines set by WHO,” The Minister stated. “The UNODC, which advises the WHO, has indicated that there is still insufficient evidence to classify kratom as a Schedule I narcotic. Therefore, we are waiting for more complete research before taking any action,” he explained in an interview with CNBC Indonesia at the Indonesian Parliament building on June 25, 2024.

He reiterated that the Indonesian government’s cautious approach reflects a broader international consensus. Countries around the world are also waiting for more definitive scientific findings before making regulatory decisions regarding kratom. “Globally, the situation is the same. Many countries are in a holding pattern, following WHO’s lead and awaiting further evidence,” He added.

When asked about his views on promoting kratom as an export commodity, He clarified that this issue falls outside the Ministry of Health’s jurisdiction. Matters related to the commercial trade and industrial development of kratom are managed by the Ministry of Trade (Kemendag) and the Ministry of Industry (Kemenperin). “Our role at the Ministry of Health is strictly limited to the classification of substances. Decisions about trade and industry are beyond our purview,” he emphasized.

This distinction is crucial for understanding the Indonesian government’s holistic approach to kratom. While the Ministry of Health focuses on potential health impacts and regulatory classifications, the economic aspects are managed separately. This ensures that public health considerations are evaluated independently of commercial interests.

His comments highlight a balanced perspective, one that seeks to protect public health while also recognizing the economic potential of kratom. The ongoing research aims to provide a clearer picture of kratom’s safety profile, which will ultimately guide policy decisions. Until then, the Ministry of Health will continue to defer to international standards and scientific evidence.

Meanwhile, the Ministry of Trade and Ministry of Industry will play key roles in determining kratom’s future as an export commodity. The new export regulations are designed to ensure that only high-quality, refined kratom products enter global markets, potentially boosting Indonesia’s economy. This approach aims to maximize the value of kratom while maintaining strict quality controls to address concerns from importing countries.

In summary, the Minister statements underscore the importance of evidence-based policymaking. The Indonesian government is committed to following international guidelines, ensuring that any future decisions about kratom are informed by robust scientific research. This cautious yet forward-looking strategy reflects Indonesia’s broader commitment to balancing public health and economic development.

Government Regulation on Kratom Export

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ONE-KRATOM.COM, The Indonesian government has officially recognized kratom as an export commodity through the issuance of two new regulations by the Minister of Trade. These regulations provide detailed guidelines regarding which forms of kratom are permitted or prohibited for export. The rules, set forth in Permendag No. 20/2024 and Permendag No. 21/2024, will come into effect 30 days after their enactment on August 29, 2024. This marks a significant step in the regulation of kratom, a commodity with growing international demand.

Permendag No. 20/2024 serves as an amendment to Permendag No. 22/2023, which previously listed goods prohibited for export. Under this regulation, kratom is classified as an agricultural product that cannot be exported in specific forms. The ban includes raw kratom leaves, as well as dried kratom in coarse, unprocessed fragments. This decision aims to control the quality of kratom exported and prevent raw or minimally processed products from entering international markets.

However, Permendag No. 21/2024 provides a clear framework for kratom products that are allowed for export. This regulation amends Permendag No. 23/2023, outlining the standards for allowable kratom exports. Only kratom that has been finely ground or processed into powder form is permitted for international trade. This ensures that only high-quality, refined products reach global markets, enhancing Indonesia’s export standards.

Director General of Foreign Trade at the Ministry of Trade, clarified the rationale behind these regulations. He explained that the ban on raw kratom leaves and coarse fragments aims to streamline exports and avoid regulatory issues in importing countries. Previously, many kratom shipments from Indonesia were held up in foreign ports due to unclear standards, causing financial losses for exporters.

The new regulations also seek to enhance the value of kratom exports. By focusing on refined products, the government hopes to encourage domestic processing industries, thus increasing the commodity’s value before it reaches international markets. This move could potentially boost the earnings of Indonesian kratom producers and contribute to the country’s overall economic growth.

Furthermore, the regulations are intended to minimize the risk of misuse. Kratom has faced scrutiny in several countries due to its psychoactive properties, and the government aims to address these concerns through stricter controls. Exporters are now required to obtain specific export permits, and export quotas will be enforced to regulate the volume of kratom shipped abroad. This system is designed to maintain oversight and ensure compliance with international standards.

Another significant aspect of the new regulations is the implementation of a pre-export notification (PEN) system. Through this mechanism, importing countries can authorize kratom imports in advance, reducing the likelihood of illicit distribution. This collaborative approach not only enhances transparency but also builds trust between Indonesia and its trading partners, fostering more stable and reliable export relationships.

The government’s decision to regulate kratom exports aligns with broader efforts to add value to Indonesia’s agricultural commodities. For years, raw kratom from Indonesia has been processed in third countries, which then re-export the refined product at a higher profit margin. By mandating that kratom be processed domestically, Indonesia aims to capture more of this value and strengthen its position in the global kratom market.

The new rules also highlight the importance of legal clarity for kratom exporters. Previously, kratom was categorized as a free export commodity, leading to inconsistencies and confusion among traders. With the introduction of these regulations, exporters now have a clear legal framework to follow, which can help them navigate international trade more effectively and avoid unnecessary delays or penalties.

Overall, the government’s initiative marks a significant shift in the regulation of kratom exports. By focusing on quality, value addition, and regulatory compliance, these new rules aim to enhance Indonesia’s competitiveness in the global kratom market while ensuring that the trade remains transparent and accountable.