Solo Bisnis, Indonesian spice and craft exporter

Indonesia is the world's king of cloves. From the volcanic soil of Maluku, Sulawesi, and Java, this country grows more than half of the global production of cloves, the ancient spice that once inspired Europeans to sail thousands of miles.
According to data from the Food and Agriculture Organization (FAO) and the International Trade Center (ITC) (2023-2024), Indonesia produces around 120,000-135,000 tons of cloves per year, making it the world's largest producer. This superiority is not only in volume, but also in quality. Indonesian cloves have a very high eugenol content, producing a sharp aroma sought after by the culinary, pharmaceutical, and perfume industries.

Islands like Maluku, nicknamed the "Spice Islands," remain production centers, along with North Sulawesi and East Java. Of the total national harvest, more than 70% is consumed by the domestic kretek (clove) industry, while the remainder is exported to India, the Middle East, and Europe.
In comparison, other producing countries like Madagascar only produce 25,000-30,000 tons per year, followed by Tanzania at 20,000-23,000 tons, and Sri Lanka at even smaller. This means that Indonesia's production is five times greater than its closest competitor.

Domestic Contribution: Cloves for Kretek

Interestingly, despite being a global leader, Indonesia is not the largest exporter. Most cloves are consumed domestically, particularly in the kretek industry, which is both a cultural identity and an economic driver.

In comparison, national tobacco production, which supports kretek, has actually decreased: from 269,800 tons in 2019 to just 238,800 tons in 2023 (BPS). Conversely, clove production has remained relatively stable, only slightly decreasing from 139,000 tons in 2019 to 134,100 tons in 2023. This stability maintains supplies for the cigarette industry and essential oil exports.

Why does Indonesian production remain stable despite increasing global demand? The reason is because the domestic market absorbs the majority of production. Kretek cigarettes require a mixture of 30% cloves and 70% tobacco. When tobacco production declines, the cigarette industry still relies on cloves to maintain its distinctive flavor and aroma.

From an economic perspective, reliance on the domestic market means Indonesia's clove exports are relatively limited, leading countries like Madagascar to be more aggressive in the export market despite their smaller production.

Indonesia's prominence as the "king of cloves" is not only historical but also strategic. The clove-based essential oil industry continues to grow, supplying ingredients for herbal medicines, antiseptics, and perfumes. However, its pure export potential remains under-utilized, as most of the harvest is consumed by clove cigarettes.

Outside of Indonesia, several African and Indian Ocean countries play a significant role in the clove trade. Madagascar is the second largest player, with an annual production of 25,000-30,000 tons. Most cloves from the Sambava region are exported to Europe and the United States. Madagascar's cloves are known for their rich, sweet aroma, although their essential oil content is slightly lower than that of Indonesian cloves.

Tanzania, particularly Zanzibar, has a long history as a spice trading center since the colonial era. Production has now declined to 20,000-23,000 tons per year, but its quality remains sought after for its strong flavor. The country remains an important supplier to the European and Middle Eastern markets.

Meanwhile, Sri Lanka and Comoros serve as premium producers with smaller volumes. Sri Lanka produces around 9,000-11,000 tons per year, widely used in Ayurvedic medicine and traditional South Asian cuisine. Meanwhile, Comoros, despite producing only 5,000-6,500 tons, makes cloves a major source of export revenue. These countries rely on manual harvesting and natural drying methods to maintain quality.

Looking at the global market structure, it's clear that Indonesian production dominates more than half of the world's supply. Other countries, such as Madagascar and Tanzania, rely more heavily on exports due to their low domestic consumption. This contrasts with Indonesia, where more than 70% of production is absorbed by the domestic kretek industry, making Indonesian clove exports disproportionate to its production capacity.

Furthermore, smaller countries like Kenya, India, Brazil, and Malaysia produce only limited volumes, usually for local consumption or niche exports such as organic cloves. Thus, despite the presence of several players in the market, Indonesia remains irreplaceable in the global clove ecosystem.