Indonesia, the world's second-largest vanilla producer after Madagascar, boasts high-quality vanilla with a robust and enduring aroma. Indonesian vanilla also effectively meets the growing global market demand. The global market price for vanilla is notably high, with an average of 270.40 euros per kilogram for vanilla extract and 175.56 euros per kilogram for whole vanilla in 2022. The high price tag has earned vanilla the moniker "black gold." According to the Food and Agriculture Organization of the United Nations (FAO) data from 2020, Indonesia contributed approximately 30.3% of global vanilla production, producing around 2,306 tons. There is substantial potential to increase Indonesia's vanilla exports. Data from the ITC Export Potential Map reveals a potential increase of USD 59 million for Indonesian vanilla exports worldwide. Head of the Research and Development Division of the Indonesian Export Financing Institution (LPEI), expressed concerns about the global vanilla supply due to factors such as drought, cyclones, and poor farming practices in Madagascar.
In 2022, Indonesia's top five export destinations for vanilla were the United States (64.93%), Germany (8.62%), the Netherlands (7.53%), Singapore (2.63%), and Canada (2.50%). Furthermore, there has been a significant increase in demand for vanilla from countries such as France, the United States, Belgium, the United Kingdom, and Mauritius. Currently, Indonesia's vanilla exports are influenced by various variables, including the price of French vanilla as the primary competing country, Indonesia's per capita GDP, the destination country's per capita GDP, economic distance, and exchange rates. This creates significant opportunities for Indonesia to expand its market share. Therefore, the development of the vanilla commodity should extend beyond financial support to also include benefits related to product quality improvement, community well-being, and environmental sustainability. As the Special Mission Vehicle (SMV) of the Ministry of Finance of the Republic of Indonesia, LPEI acts as a strategic partner in the export ecosystem, focusing on areas beyond financing, developmental impact, and sustainability. LPEI, in collaboration with the Directorate General of National Customs and Excise, is taking concrete steps to enhance product quality, production capacity, and expand vanilla export markets to benefit 200 farmers from 20 villages in the Manggarai and Manggarai Barat districts.
