ILO media visit spotlights inclusive finance in Indonesia’s patchouli industry

ACEH, Indonesia (ILO News) - National and local journalists visited Aceh to gain first-hand insights into how inclusive finance and multi-stakeholder collaboration are strengthening the patchouli oil value chain and expanding economic opportunities at the grassroots level.

The visit also showcased how the ILO's Promoting SME Enterprises through Improved Entrepreneurs' Access to Financial Services (Promise II Impact) project has been supporting micro, small, and medium-sized enterprises (MSMEs) to become more resilient and competitive.

Organized under the ILO Media Fellowship Programme, the visit provided selected journalists with direct exposure to project interventions aimed at revitalizing the patchouli sector and demonstrating the importance of financial literacy and digitalization as well as a greater access to finance through partnerships with key stakeholders.

The programme, held in February, brought together five journalists who began their visit at BPRS Mustaqim, a local Islamic rural bank and a key project partner. The bank has developed financing schemes tailored to MSMEs, particularly patchouli farmers who often lack collateral and formal credit histories.

Journalists learned how improved access to finance has enabled farmers to increase production capacity, maintain quality standards, and strengthen business continuity, highlighting the critical role of inclusive financial systems in rural development.

Banda Aceh Mayor Illiza Sa'aduddin Djamal welcomed the journalists and reaffirmed the city's vision of "Aceh as the City of Perfume," positioning patchouli oil as a driver of local economic growth. She stressed the importance of collaboration across multi-stakeholders and highlighted the media's role: "The media plays a strategic role in promoting Aceh as the City of Perfume, helping to showcase our local potential and connect it with wider national and global audiences."

At the Atsiri Research Center of Syiah Kuala University (ARC-USK), journalists met Dr Syaifullah Muhammad, who shared how research and innovation are improving cultivation and distillation processes to meet international standards. "Strengthening product consistency and quality is essential for maintaining Aceh's competitiveness in global markets," he said.

Meanwhile, in Teuladan Village, Aceh Besar, journalists observed cultivation and distillation activities and met members of the Lhoong Aceh Sejahtera Patchouli Cooperative (Nilas). Faisal, the cooperative's chair and Director of PT U Green Aromatics International, demonstrated MyNilam, a web-based application that supports transparent production and transaction records.

Through collaboration with ARC-USK and PT Pegadaian, an Indonesian state-owned pawnbroker, the company supports farmers and directly purchases patchouli, producing high-quality oil for export, including to France.

The visit also featured Teuku Razuan, a former farmer turned entrepreneur who now employs more than 20 young people in Aceh Jaya and promotes a more sustainable patchouli ecosystem by increasing production capacity and encouraging youth participation.

"One day, I hope to ensure that patchouli farming provides decent work, not only for myself and my family, but also for others, especially young people," he shared.

Reflecting on the visit, participating journalists highlighted the value of field-based engagement in strengthening their understanding of development issues. Aning, a journalist from Kompas.com, noted that the experience provided deeper insights into sustainable enterprise development at provincial and district levels.

"The fellowship organized by the ILO can serve as a model for how institutions provide comprehensive information to the public through the media," Aning said. "Field visits and direct interaction clearly demonstrate the importance of multi-stakeholder collaboration in addressing employment issues and promoting sustainable enterprise development to support national economic growth."

"Through the media visit, the ILO aims to foster high-quality, human-centred reporting while strengthening collaboration with media partners to highlight how inclusive finance can drive decent work, MSME competitiveness and sustainable rural development," said Djauhari Sitorus, Project Manager of the ILO's Promise II Impact project.