Jakarta, June 3, 2025 – The Ministry of Trade of the Republic of Indonesia, through the Directorate General of Foreign Trade, has officially determined the percentage of Kratom Export Rights (HEK) for the July–December 2025 period. The decision was made during a coordination meeting held by the Directorate of Export for Agricultural and Forestry Products, based on Ministry of Trade Regulation No. 9 of 2025.
The export rights were determined based on three main data points: the average Free on Board (FOB) export price of kratom, the stock availability in warehouses, and the volume of outstanding purchase orders (POs). According to the latest surveyor report as of May 2025, the total kratom supply in warehouses reached 782,000 kg, while the total outstanding PO volume amounted to 7,020,000 kg.
With the average export price recorded at USD 3.28/kg, the base export rights percentage was set at 33%, in accordance with the established pricing scheme. However, due to excess supply over demand, a 3% reduction was applied, resulting in a final export rights range of 28% to 36%, depending on each exporter’s capacity.
The meeting also highlighted a significant gap between the declared installed production capacity and the actual audited capacity found through random inspections. While producers reported a total installed capacity of 298 million kg per 6-month period, the actual realized export volume as of May 31, 2025, was only 6.5 million kg, or approximately 2.19% of the reported capacity, signaling a substantial discrepancy between potential and actual exports.
In a proposed simulation, if working hours are adjusted according to the latest labor regulations (8 hours per day for 22 days per month), the total installed capacity would drop by 76%, reducing it to around 72 million kg per 6-month period. This directly impacts the volume allocated for export rights.
The Directorate General of Foreign Trade emphasized that data submitted by cooperatives or associations must be accurate and credible. If the submitted data is incomplete or deemed unreliable, the supply-demand calculations may be disregarded, and export rights will be determined solely based on export prices.
Kratom Export Rights are established every six months, covering the January–June and July–December periods. These serve as the official reference for registered exporters—both producers and non-producers—to manage their export volumes legally and in compliance with government regulations.
As a responsible industry player, MagicTree fully supports the Ministry of Trade’s efforts to implement a structured and transparent system for kratom export regulation. This policy not only ensures fair trade and legal certainty for all exporters, but also helps uphold Indonesia’s reputation as a reliable global supplier of high-quality kratom. By aligning our operations with government regulations and continuously maintaining good manufacturing and documentation practices, MagicTree is committed to contributing to a sustainable and ethical kratom industry.
