Indonesian Governor Hopes Kratom Prices Can Increase for Farmers

05 Nov, 2024 News 0 Hit: 74

The governor of the Indonesian province of West Kalimantan, Sutarmidji, told media he would like to see kratom farmers earn more income per kilogram.

Governor Sutarmidji is currently running for re-election. He met with kratom farmers at a campaign stop in Jongkong Kiri Hilir Village. "The price (of kratom) at the farmer level is still not (ideal), it is only IDR 30 thousand (per kilogram)," he said. "Ideally it [should be] above IDR 50 thousand (per kilogram)."

Translated to US dollars, 30,000 Indonesian Rupiah only amounts to $1.93 per kilo that goes into kratom farmers' pockets. One farmer reported that the price is down from where it used to be, at IDR 35,000. Should farmers get the increase Governor Sutarmidji is calling for, a kilo of kratom would still only be a fraction of the consumer cost, at $3.21 per kilo.

Sutarmidji also estimated kratom export costs at IDR 80-90 million per ton, which translates to about $6.40 per kilo.

Indonesia has recently introduced new regulations to enhance the quality and reputation of kratom exports. The regulations, outlined in Minister of Trade Regulations Numbers 20 and 21 of 2024, focus on maintaining quality standards that ensure kratom is free from heavy metals and bacterial contamination, and banning the export of kratom that fails to meet stringent safety standards.

The United States imports 95% of its kratom from Indonesia.
Indonesia may soon face competition from Thailand, where kratom has been consumed traditionally since at least the 15th century. Thailand outlawed kratom in 1943 due to its competition with opium, upon which the Thai government collected taxes at the time. Despite its illegal status, traditional use persisted.
After decriminalizing kratom in 2021, the country has been exploring opportunities to enter the lucrative US market. While domestic sales have been thriving, with many vendors selling kratom leaves on social media platforms, the Thai government is considering allowing exports to meet the high demand in the US.
This may pose some competition to Indonesia's near monopoly of the American and European kratom markets.

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