Jakarta. Indonesia is looking to expand its downstream industry policy to include benzoin resin, a high-value commodity largely overlooked amid the country’s push to process natural resources like nickel and tin, according to National Economic Council Chairman Luhut Binsar Pandjaitan.

In a statement shared on his official social media account Friday, Luhut said benzoin, locally known as kemenyan, offers significant untapped potential for value-added processing in Indonesia. The resin, derived from the Styrax benzoin tree, is used in the production of cosmetics, aromatherapy products, food additives, and pharmaceuticals.

“For too long, our focus has been limited to nickel and tin. Yet there is one commodity that holds immense value and has real social impact: kemenyan,” said Luhut, a senior statesman and former chief investment minister.

Indonesia’s natural benzoin, particularly from North Sumatra, is regarded as among the best in the world, with exports reaching Asian and European markets. In 2024 alone, Indonesia exported 43,000 tons of benzoin resin worth more than $52 million, Luhut said. Around 30 percent of the population in North Tapanuli and Humbang Hasundutan regencies depend on the commodity for their livelihoods.

Despite this, farm-gate prices for benzoin resin remain low, prompting Luhut to call for community-based downstream development. “We don’t need large factories. What we need is the willingness to create added value where benzoin trees grow,” he said.

Luhut proposed using simple technologies like steam distillation to produce benzoin oil, standardized resins, and bioactives ready for export. He added that interest from private-sector players and potential partners is beginning to emerge, but broader coordination is needed.

“To truly benefit local communities, we need integrated collaboration across ministries, local governments, and businesses,” Luhut said, adding that the National Economic Council is working on a digital mapping project to chart the distribution of benzoin trees and land to inform data-driven development.

He framed the initiative as part of President Prabowo Subianto’s economic agenda to deepen downstream processing and industrialization across sectors, not just mining.

“If managed correctly, benzoin could become a global showcase of successful, community-based downstream development, growing from the villages, creating global impact,” Luhut concluded.