Jambi’s Local Business Products Enter Jakarta Market with Astra Agro’s Support
The Micro, Small, and Medium Enterprise (MSME) sector in Indonesia continues to play a crucial role in driving economic growth, particularly in rural areas. One such example is Berkah Serai Wangi (BSW), a promising MSME based in Jambi that has successfully penetrated the Jakarta market with its high-quality citronella oil products.
BSW is a local business fostered by PT Sari Aditya Loka (SAL), a subsidiary of PT Astra Agro Lestari Tbk. Since its establishment in 2022, BSW has rapidly expanded its reach, producing and marketing citronella oil, an essential oil extracted from citronella plants, not only within Jambi but also in Jakarta, a key economic hub of Indonesia. The growth of BSW has been significantly supported by PT SAL’s continuous mentoring, training, and market access initiatives.
The Journey of BSW: From Local Enterprise to Jakarta Market
BSW’s journey began as a small local enterprise producing citronella oil, which is widely known for its benefits as an insect repellent, air freshener, and ingredient in various personal care products. However, their product line soon expanded to include citronella-based dish soap, massage oil, and floor cleaner.
Currently, BSW is capable of producing up to 3,000 bottles of citronella oil per day. This impressive production capacity is made possible through collaboration with the Suku Anak Dalam (SAD) community, an indigenous group in Jambi. SAD residents not only assist in the production process but also cultivate the citronella plants that serve as the primary raw material for BSW’s products.
‘This is all thanks to the cooperation of SAD residents who assist in the production process. Additionally, we also source plants directly from their cultivation, which is supported by PT SAL,’ said Hendri Sumasto, BSW’s MSME coach. He highlighted that PT SAL’s role goes beyond providing access to raw materials; the company has also been instrumental in training and mentoring local farmers to improve their agricultural practices.
PT SAL’s Commitment to MSME Development
Hendri further explained that PT SAL has played a crucial role in empowering SAD residents by helping them cultivate citronella plants on their land. Through this initiative, the indigenous community has gained an additional source of income while contributing to the sustainability of the citronella supply chain.
‘BSW consistently produces oil and approaches government agencies to use local MSME products, which indirectly promotes our products. As a result, we have gained more consumers through word of mouth,’ Hendri added.
One of the key challenges faced by MSMEs like BSW is marketing and expanding their customer base beyond their local communities. To address this, PT SAL has actively supported BSW in reaching a wider market. The company has facilitated partnerships between BSW and government agencies, ensuring that their products receive proper recognition and demand.
According to PT SAL Corporate Social Responsibility (CSR) Assistant Slamet Riyadi, the idea of cultivating citronella plants originated from SAD residents themselves. In 2023, members of the Temenggung Grip group within the SAD community initially planted citronella to repel mosquitoes, insects, and macaques that often disrupted their food crops.
‘Initially, SAD residents planted the lemongrass to deter mosquitoes, insects, and macaques that disturbed their food crops,’ said Slamet. Over time, the potential economic benefits of citronella cultivation became apparent, leading to the development of citronella oil as a commercial product.
Overcoming Challenges and Expanding Market Reach
Despite their success, BSW and other similar MSMEs still face numerous challenges, particularly in terms of cultivation and marketing prospects. According to Slamet, one of the main difficulties lies in ensuring a consistent supply of raw materials while also expanding the reach of BSW’s products in competitive markets like Jakarta.
‘In line with BSW, SAD residents are also one of PT SAL’s priorities in achieving economic independence so they do not solely depend on natural products from the Bukit Duabelas National Park (TNBD) area,’ he explained. This initiative aligns with PT SAL’s broader mission of sustainable economic empowerment, ensuring that indigenous communities have viable income sources beyond traditional forest-based activities.
Expanding into the Jakarta market has required BSW to adopt strategic marketing approaches. One of the key strategies has been leveraging digital platforms and participating in trade fairs. Through PT SAL’s guidance, BSW has been able to showcase its products at various exhibitions, gaining valuable exposure and attracting potential buyers. Additionally, collaborations with government agencies and other stakeholders have helped in establishing credibility and trust among consumers.
Sustainability and Economic Empowerment
PT SAL’s efforts to support MSMEs like BSW are deeply rooted in its commitment to corporate social responsibility and sustainable business practices. By fostering local enterprises and encouraging indigenous communities to engage in agribusiness, PT SAL contributes to long-term economic stability in rural areas.
The company’s approach aligns with Astra Agro’s broader sustainability principles, emphasizing prosperity for the nation. This commitment is reflected in various initiatives, such as training programs for farmers, providing financial assistance, and facilitating market access for MSMEs.
For SAD residents, the citronella oil business presents a significant opportunity to improve their livelihoods. Many indigenous communities in Indonesia struggle with economic insecurity due to limited access to formal employment and business opportunities. By engaging in citronella cultivation and production, SAD members can diversify their income sources and achieve greater financial independence.
The Future of BSW and MSME Growth in Indonesia
Looking ahead, BSW aims to further strengthen its position in the market by expanding its product range and enhancing product quality. Plans are underway to explore new product innovations, such as citronella-based cosmetics and aromatherapy products, which have growing demand in both domestic and international markets.
With continued support from PT SAL and Astra Agro, BSW is optimistic about achieving sustained growth and making a meaningful impact on the local economy. By empowering MSMEs and indigenous communities, initiatives like these contribute to Indonesia’s broader goal of fostering inclusive economic development.
The success story of BSW serves as an inspiring example of how collaboration between corporations and local enterprises can lead to significant economic progress. As more MSMEs gain access to mentorship, funding, and market opportunities, the future of Indonesia’s small business sector looks increasingly promising.
Through continuous innovation, sustainable practices, and strategic partnerships, BSW is well on its way to becoming a leading MSME in the Indonesian essential oil industry. As the demand for natural and eco-friendly products continues to rise, BSW’s citronella oil products are set to play a crucial role in meeting consumer needs while empowering local communities.
