Lemongrass (Cymbopogon nardus or Cymbopogon winterianus) is a plant that produces essential oils that are Indonesia’s mainstay in the global market. With the main content of citronellal, citronellol, and geraniol, lemongrass essential oil has many benefits and development opportunities that make it one of the potential leading commodities.
Lemongrass essential oil, known internationally as Citronella Oil, has a distinctive citrus aroma. Its active compound content makes it the main ingredient in various products, such as perfumes, cosmetics, soaps, lotions, aromatherapy candles, and household care products. In addition, this oil is also used as a botanical pesticide, natural herbicide, and raw material for medicines due to its antibacterial, antifungal, and antioxidant properties.
In addition to its economic potential, lemongrass plays an important role in environmental conservation. This plant is able to grow on critical land, including ex-mining areas, and helps prevent soil erosion. Lemongrass can also be integrated with the livestock sector by utilizing its waste as animal feed, creating a sustainable integrated agricultural model. With the right strategy, Indonesia can strengthen its position as the world’s leading producer of essential oils, maximizing economic benefits while supporting environmental sustainability.
High Economic Value
The essential oil industry has great potential to be developed, especially since Indonesia has a comparative advantage in providing raw materials. The development of this industry not only increases the income of essential oil farmers, but also opens up employment opportunities in the agro-industrial sector and introduces industrial systems and behavior to rural areas.
Citronella essential oil is produced through the distillation process of citronella leaves, which contain active compounds such as geraniol, citronellal, borneol, limonene, camphene, dipentene, geranyl acetate, methyl eugenol, and farresol. Of these compounds, citronellal and geraniol are the main standards for export quality because they are the basic ingredients for making esters in perfumes and cosmetics.
Currently, citronella oil is one of Indonesia’s main export commodities, with around 40% of its production exported. The main production centers are in Aceh, West Java, Central Java, Banten, and East Java. Head of the West Java Provincial Plantation Service, Gandjar Yudniarsa, said that Indonesian essential oils have been exported to 100 countries, where in 2024 alone, West Java exported Indonesian citronella oil worth 68 million USD (around IDR 1 trillion).
Global demand for citronella essential oil continues to increase by around 3-5% annually, providing very high economic value. Indonesia, as the world’s third largest producer after China and Vietnam, has major markets in the United States, Europe, and China.
This advantage is further strengthened by the development of superior varieties such as Sitrona 1 Agribun and Sitrona 2 Agribun, which produce export-quality oil with citronellal content of up to 60% and geraniol reaching 90%. This variety was released by the Spice and Medicinal Crops Research Institute (BALITTRO) under the coordination of BSIP Plantation, Ministry of Agriculture of the Republic of Indonesia, with the aim of replacing local varieties that have lower active compound content and meeting the needs of the increasingly competitive export market.
Financially, the citronella essential oil processing business is very profitable. With a B/C ratio above 1.09 and a return on investment in less than five years, the development of this oil cultivation and refining is an attractive investment option. Innovations in refining technology have also increased production efficiency, while the expansion of planting areas in various regions helps meet the increasing market demand. These efforts have also opened up new job opportunities, especially in the agricultural and agro-industrial sectors.
However, there are still several challenges, such as fluctuations in global market prices, dependence on traditional cultivation methods, and low adoption of modern technology by farmers. To overcome these challenges, support is needed from the government and the private sector in the form of technical training, development of modern refining infrastructure, and the provision of superior seeds on a sustainable basis. In addition, integration with the livestock sector, such as the use of leaf waste as animal feed, can provide significant added value. With the right strategy, Indonesia has a great opportunity to strengthen its position as the global market leader for citronella essential oil, while taking advantage of the economic and environmental potential it offers.
Environmental Benefits of Lemongrass Cultivation
Lemongrass (Cymbopogon nardus or Cymbopogon winterianus) has extraordinary benefits, not only in terms of economy but also in environmental conservation. This plant is able to grow well on marginal land, such as ex-mining areas, which often experience physical and chemical damage. With a strong root system, lemongrass helps prevent soil erosion, increases the capacity of the soil to absorb water, and restores damaged soil structure. As a reclamation plant, lemongrass provides dual benefits: restoring the ecosystem function of critical land while producing high-value essential oils.
Lemongrass cultivation techniques are relatively simple, making it an ideal plant for various land conditions. Lemongrass grows optimally in soil with good drainage, pH 5.5-7, and an altitude of up to 1,000 meters above sea level. Loose land and sufficient access to sunlight will improve the quality and quantity of oil yields. Lemongrass has significant yield potential.
With superior varieties such as Sitrona 1 Agribun and Sitrona 2 Agribun, the yield of essential oil can reach 1.5% with citronellal content of up to 60% and geraniol reaching 90%. This result is much higher than local varieties, making Indonesian essential oils increasingly competitive in the global market. In one hectare of land, fresh leaf production can reach 15-20 tons per harvest, with the potential for three harvests a year, depending on maintenance and environmental conditions. This economic value makes lemongrass one of the priority crops in the development of export commodity-based agribusiness.
The development of lemongrass requires support in various aspects, including technical training for farmers, provision of superior varieties, and access to modern distillation technology to increase oil yield and quality. In addition, the integration of lemongrass with an integrated agricultural system, such as the use of leaf waste as animal feed, will provide significant added value. Support from the government and the private sector is essential to expand planting areas on marginal land and strengthen the supply chain from production to marketing.