Indonesia is one of the world's largest producers and exporters of essential oils, producing over 4,000 tons annually. Around 85% of global patchouli oil consumption comes from Indonesia, with production between 1,000-1,500 tons per year and average exports of 1,057 tons annually. The business plan proposes establishing a 30-acre patchouli oil plantation and production facility in Indonesia to capitalize on the country's large natural resources and demand from the perfume, fragrance, health, and cosmetics industries. The operation would produce a variety of patchouli oil products for local and international markets.

1. PATCHOULI OIL BUSINESS PLANINDONESIA
Presented By :
Lena Lailasari Girsang

2. EXECUTIVE SUMMARY
Patchouli Oil Industry
Indonesia was one of the biggest exporter of essential oil in the world, the output was
more than 4000 tons per annum (Statistics Indonesia, 2011). Around 85% of patchouli oil
world consumption was coming from Indonesia. World demand of patchouli oil was more
than 1500 tons per annum. Indonesia’s output of patchouli oil was 1000 to 1500 tons per
annum. Average export of patchouli oil was 1.057 ton per year (Ministry of Trade, 2012).
The large natural resources was one of the main factor which was supporting essential oil
plantation, refinery and trading business. The main area producing patchouli were
Sulawesi, Sumatra and Java island. Small type industry on continuous patchouli oil
production was using a 30 acre field of plantation project. Most famous variety were
Tapaktuan, Lhokseumawe, Sidikalang with land productivity and yield were 13.28 tons/acre
and 2.83%, 11.09 tons/acre and 3.21%, 10.5 tons/acre and 2.89% (Balittro, 2012)

3. World Essential Oil Production-2007
Essential Oil
Production (MT)
Main
Derivatives
Orange
51.000
Brazil, China
Plural
Cornmint
32.000
India, China
Plural
Lemon
9.200
Argentine, Spain
Plural
Eucalyptus
4.000
China, India
Limited
Peppermint
3.300
USA, India
Limited
Citronella
1.800
China, Indonesia
Limited
Clove Leaf
1.800
Indonesia, Madagascar
Plural
Sassafras
1.800
China
Plural
Lime
1.800
Mexico
Uneconomical
Lavandin
1.300
Frace, Spain
Uneconomical
Patchouli
1.200
Indonesia, China
Uneconomical
Brian Lawrence-Perfumer & Flavourist v.34 January 2009

4. Export Import Data, Indonesia Ministry of Trade

6. Top Exporters of Essential Oil (HS 3301) in 2010
Sources : ITC/Trademap, 2011

7. WORLD MAP OF ESSENTIAL OIL CONSUMPTION
Uses :
• Perfume industry
• Fragrance
• Health care products
• Cosmetics
584.5 Million
Dollar
Export of essential oil from
Indonesia in 2012
1200 ton per
annum export of
patchouli oil in 2010
Country of
Destination
USA, Singapore, France, India, Swiss, Spain, Ge
rmany, Holland, China, UK, Mexico, EAU, Turkey
, Italy, Brazil, Japan, Pakistan, Hongkong, Taiwa
n, East

8. BUSINESS DESCRIPTION
PLANTATION
Pilot project needs 30 acre of land. Every acre of land could be planted
with patchouli seed around 20.000-22.000 plants.
PRODUCTION
Production of dried patchouli leaves would be 5 ton/month/acres. Yield minimum
2%, patchouli oil production would be min 80 kg /acres/month, so it would be 700
kg per month. Distillation unit would be 3 unit.
QUALITY CONTROL
Patchouli Alcohol (PA) min 30, acid value max 5. Every shipment
provided with CofA, MSDS, Flow of Processing, Product Specification,
and GC data. Packing with plastic drum consist of 200 kg of oil.
MARKETING
Making the right marketing strategy and then transform it into a right
marketing plan

9. Patchouli Plantation in Indonesia
2008-2013
(Source : Indonesia Statistic)
35000
30000
29783
28008
25000
29381
24472
24535
20000
22132
Luas Areal (Ha)
15000
10000
5000
0
2008
2009
2010
2011
2012
2013

10. LOCAL MARKET AND COMPETITIVE
LANDSCAPE
Local Market
Recently, there were more than 30 companies of essential oil in Indonesia. The huge
company were :
1. Givaudan
2. Aroma
3. Van Aroma
4. Djasulawangi
5. Takasago
6. Indesso
7. Karimun Kencana Aromatics, etc.
Price was fluctuated, it depends on stock, demand, local price, season and the essential
company player. Small distiller sell their product to essential oil companies, and they’re
collected it into tons and then export it. Small amount of patchouli oil wouldn’t catch
up the minimum quantity needed by the importers. A long marketing chain start from
traditional distiller-collectors-essential oil companies-traders-buyers. Singapore was one
of the patchouli oil biggest trader.

11. Price Fluctuation of Patchouli Oil
Year
Month
Price (IDR)
Sources
Patchouli Oil Price Fluctuation in
2013
600000
2013
1
2
480.000
500.000
Takasago, Indesso,
Karimun Kencana,
Van Aroma,
Djasulawangi,
Aroma,
500000
55000050000
5
525000
500000
500000
480000
400000
3
450.000
Nusaroma,Pak Yanto,
Pak Susilo,
4
450.000
Pak Sukijan
5
500.000
7
550.000
9
525.000
10
500.000
11
450.000
450000
550.000
8
45000050000
4
480.000
6
500000
480000
300000
200000
100000
0
0
2
4
6
8
10
12

12. International Market
Around 70% of patchouli oil global market was dominated by Givaudan. The others was
playing in a low quantity and volume. Since there’s no other substituent of patchouli
oil, fragrance and perfume industry still needs patchouli oil for their product.

13. PRODUCT AND SERVICES
• Dark Patchouli Oil PA 30
• Light Patchouli Oil PA 30
• Light Patchouli Oil PA 35
• Light Patchouli Oil PA 40
• Patchouli Alcohol Crystal
Services
• Decreasing the level of acid
• Decreasing the level of iron
• Increasing the PA grade
• Colorless
• Purifying

14. SALES, MARKETING AND PROMOTION
Marketing Strategy
•
•
•
Define the customer target, local and international market also the sales target
Creating a good relation and partnership with the previous essential oil companies
Collecting the sources of any potential oils could be delivered to the customer
through an essential oil distiller data and sources of plantation-a trading option
and product diversity
Marketing Action Plan
•
•
•
•
•
•
•
Creating an informative website, making a video product and upload it into
Youtube, making a Facebook page, Twitter and another social media
Making accounts in marketplace e.g. Alibaba, Linkedin, Toboc, local marketplace
like Indotrading and Agromaret
Creating a blogspot or wordpress consist of articles and tips in essential oil, latest
prices and trends
Making monthly or weekly email and newsletter. Creating a regular schedule of
visiting potential customers.
Making a complete documents of products e.g. Certificate of Analysis (CofA) in
every shipment, Material Safety Data Sheet (MSDS) for exports, Flow of
Processing and Product Specification. Some of them could also displayed in
website
Joined a specific fragrance, flavor, beauty exhibition at least once in a year
Joined groups and important meeting of Dewan Atsiri Indonesia (DAI)

15. VIDEO MARKETING & VIRAL DISTRIBUTION
How does it work ?
Local
AUDIENCE
• Video of guess visiting the
factory
• Video of customer
testimony of satisfaction
• Video of production process
Europe
• Make in
English, France and
Spain language
• Video of Europe
customer visiting le
office
• In English
US
• Video of supplier
and farmers joined
with the cooperation
Asia
72%
81.3%
87.6%
Audience prefer to see
video of the company
process and products
Using google search
engine and youtube
search before decided
to buy
Love to watch video with
real reports and real
people rather than too
much editing and
photoshop

16. MANAGEMENT
From Upstream To Downstream
Making a management system was one of things must be applied in the company.
Plantation
Using a cooperation system to farmers. Company gave the patchouli seed,
farmers plant them and harvest should be sold to the company.
Production
Patchouli oil distillation includes a wide range of plantation area, distribution and
transportation. Supervisory management would be an important key of success.
Every dry leaves distribution, warehouse movement, production, funding in
central processing unit must be reported in forms.
Products and Quality Control
Making every product worthy and qualified was on of the focus. Quality control
set a serial examination process before and after the production process.
Packaging of bulk and retail sales.
Marketing
At first, use the most efficient cost for marketing. Once it’s growing up, the
marketing action plan could be done.

18. A FEASIBILITY PRODUT ON
THE PROJECT

21. APPENDICES
1.
2.
3.
4.
5.
6.
7.
8.
Statistics Indonesia, 2013. The Annual Report of Forestry and Plantation. Jakarta
Ministry of Trade, 2012. The Export Import Annual Report of 2011. Jakarta
Balai Penelitian Tanaman Obat dan Rempah Indonesia (Balittro), 2012. The Press
Release of High Quality Essential Oil Seeds in Indonesia.
Brian Lawrence-Perfumer & Flavourist version 34. January 2009.
Indonesia Ministry of Trade , 2004. Export and Import Data. www.kemendag.go.id
ITC Trademap, 2011. Top Exporters of Various Products.
Arianto Muyadi, 2013. Market Workshop of Essential Oil. A presentation at
National Conference of Essential Oils (KNMA DAI), Padang, West Sumatra.
Yanuardi Taher, 2013. Quality of Essential Oild Needed By Market. A presentation
at National Conference of Essential Oils (KNMA DAI), Padang, West Sumatra.

23. SALES OVERVIEW
61%
Of the customers were local market, some of them were
essential oils company in Indonesia. The rest of it was
several country e.g. Australia, Japan, France and UK.
83%
Of the customers like Natural Dark Patchouli Oil PA 30
better than other products.
90%
Of the customers were fragrance industry, cosmetics
factory and personal health care products.
800 kg
$48
The average quantity of purchase every customer.
Until $56 per kg, price of Patchouli Oil FOB mother vessel
Indonesia.

24. ABOUT US
OUR PHILOSOPHY
We provide natural essential oil with
quality, quantity and delivery time that you
can trust.
OUR TECHNOLOGY
Fractionation units and quality control
supervised by expert from Gadjah Mada
university. Every shipment was valuable
for us, so it’s
OUR MISSION
Be your best partner on finding natural
essential oil right from the plantation with
the competitive price with our most
reliable quality.
OUR PRODUCTS
• Patchouli oil
• Clove leaf oil
• Citronella oil
• Clove bud oil
• Nutmeg oil
• Ginger oil
• Eucalyptus urophylla oil
• Services in increasing quality of essential oils

25. THANK YOU!
FOR YOUR ATTENTION
Another business plan available :
• Clove Oil Business Plan-Indonesia
• Butcher Shop Business Plan
• Coconut Palm Sugar Business Plan-Indonesia
• Organic Products Business Plan
• etc.
Ph : +62-8122-7072492
+62-274-4396147
Email :
lena.lailasari@gmail.com
lena@malya.co.id
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