INDONESIA ANNOUNCES FIRST KRATOM EXPORTS UNDER NEW REGULATIONS

For years, opponents of kratom have pointed to anti-kratom policies in Southeast Asia as a piece of anecdotal evidence against the plant. 

Now, Indonesia is taking that narrative head-on. 

A back-and-forth over the legality and regulation of kratom exports from Indonesia has concluded after the Minister of Trade announced the first official kratom export under the new rules on Feb. 28 of this year. The Indonesian government hosted an export event in February of this year to showcase the state of the kratom industry on its ‘home turf’, marking a significant shift in previous policy as kratom grows in popularity around the globe. 

Kratom exports have been a contentious topic both locally in Indonesia and among the nations that have purchased raw materials for a growing global market. Skepticism among lawmakers in Indonesia have created hesitancy among nations making kratom policy. At the same time, the Food and Drug Administration (FDA) has used a lack of consistency among kratom exporters to issue Import Alerts targeting the plant. 

According to Minister of Trade Budi Santoso, this initial shipment of kratom under these new regulations signifies a dramatic shift in the quality of exports and the process of supporting local producers. 

“I hope this first export release can be a momentum for continuous development to encourage the expansion of export markets for Indonesian products,” said Minister Budi Santoso, “as well as stimulate the national economy.”

Top to Bottom Regulations

The initial shipment sent under the new regulations was valued at $1.05 million and showed how Indonesia's new system will affect all levels of the industry. At the core of the new regulations is a focus on ‘small-holder farmers’ and a modernized export process that will deliver kratom in a more sustainable powder form rather than raw leaves. 

Indonesia’s back-and-forth with kratom exports has been going on for more than a decade and has been mostly defined by a set of recurring import alerts imposed by the FDA. Claims by the FDA have ranged from vague warnings about kratom use to specific concerns about salmonella and other biological contaminants. 

As advocates have worked to expand the knowledge base and science on kratom’s safety profile, Indonesia has instead focused its efforts on modernizing the kratom production process and expanding its capabilities as a responsible kratom supplier. 

That’s where the new regulations come in, with an assist from PT Oneject Indonesia–a company that started as a medical equipment supplier but has recently ventured into food processing and packaging. 

Under the new regulations, kratom must be exported as a powder; there is also a limit on the size of each shipment that was implemented to help smaller kratom farmers compete with bulk exporters. To ensure the safety of the exported kratom powder, PT Oneject uses an Electron Beam to process raw food materials in a “nonthermal, chemical-free food processing technology.” 

“Our collaboration with PT Oneject ensures our products do not just comply with local standards but also meet international expectations,” Santoso said. 

While the focus on creating a competitive marketplace for smaller kratom producers could have trickle-down effects on the global market for kratom (Indonesia is estimated to provide around 90 percent of the world’s kratom supply) the country’s embrace of kratom exports is a welcome development for advocates of the plant. 

Charting Indonesia’s Path to Modernization

The most recent development comes after a tumultuous few years of kratom policy in Indonesia. In 2023, Indonesian President Joko Widodo met with American President Joe Biden in hopes of finding a solution to the import alerts imposed by the FDA. That meeting came months after a doctor within the Indonesian government wrote a letter to the FDA vowing “unwavering commitment” to work with the agency to find a middle ground on kratom exports. 

That didn’t stop kratom opponents from targeting exports in 2024 when a faction within the Indonesian government floated the idea of a kratom ban. At the time, the American Kratom Association (AKA) spoke out against a proposed ban and worked directly with the Indonesian Ministry of Health to share the developing science. 

With the announcement of the new regulations, advocates hope that is a signal that the kratom question is settled within the Indonesia government. When comparing the new guidelines to that 2023 letter penned by Dr. Moeldoko, it appears Indonesia’s actions are just the latest attempt to work with the FDA. 

In the letter written to the FDA’s Assistant Commissioner for Import Operations, Indonesia specifically mentioned ways it was willing to work with the American government on establishing safe exports, including: “gamma radiation sterilization on raw materials to align with FDA standards; the promise of laboratory test results from independent labs; and a local mandate to withhold export clearance from producers who did not adhere to established standards.  

While there was no direct mention of trade policy with the United States at the event hosted in February, Santoso’s comments at the time hinted toward larger ambitions for this new era of kratom exports in Indonesia. 

“I appreciate all parties who have synergized to realize the export regulations for kratom, providing benefits for farmers and kratom exporters,” Santoso said. 

The only remaining hurdle facing Indonesian exports is the impending threat of tariffs by the United States government. 

Although the proposed tariffs are on hold for the time being, the Indonesian government has been scrambling to meet the demands of the Trump administration. The proposed rate on Indonesian exports is 32 percent, with those tariffs paused until July. 

In the meantime, the Indonesian government passed a law on Apr. 30 with lower locally produced content to reduce the trade deficit with the U.S. Indonesian officials also pledged to significantly increase annual imports from America, potentially by as much as $19 billion, to try and reduce the impact of potential tariffs on trade.