Indonesia is one of the largest producers of cajeput oil and is also the largest consumers.
Produced by steam distillation from the leaves of the Myrtaceous tree, it also goes by the botanical name Melaleuca leucadendra. It can be found close to shorelines on the island of Pulau Buru in Maluku and in some parts of Central Java.
Primarily used in massage oils, it is also used for its remedial qualities in treating stomach aches, common cold, nausea and insect bites. More than 90% of the oil produced is consumed locally by the pharma industry.
Cajeput is Indonesia's answer to China's Eucalyptus. Both used across similar applications cajeput is also common in other South East Asian countries.
Indonesia produces around 325 - 350 MT per annum, making it one of Indonesia's largest produced essential oils by volume. Cajeput trees are evergreen and can reach up to 30 meters in height. They usually have a whitish, spongy bark with a crooked trunk.
Read our latest report on Indonesia presented in October 2015 at the IFEAT conference in Sri Lanka, titled 'Indonesia - Current & Future Market Dynamics'
The cajeput oil market is predicted to slow down and industry challenges continue due to adverse weather conditions. However, quality of raw material remains stable in the current market. Demand isexpected to rise owing to the problem of reduced supply of eucalyptus oil. The local pharmaceutical industry players like Eagle Pharma have booked large quantities down at the source, therefore affecting thegeneral availability for all others.
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