In 2023, Fairventures and Good Forest Indonesia (GFI) launched the Patchouli Pilot Project in Sumur Mas village, Gunung Mas regency. This initiative is our response to the need for a short-term income solution in GFI’s agroforestry program. Patchouli, also known as Nilam in Indonesia, is a highly valued essential oil crop that is widely used in the fragrance and cosmetic industries.
According to Lisca Amelia – GFI’s Value Chain Manager, “The objective of the Patchouli Pilot Project is to develop a replicable model that seamlessly integrates patchouli cultivation into reforestation efforts, striking a balance between ecological restoration and community development.”
Why Patchouli?
Patchouli was selected for its economic potential and compatibility with agroforestry systems. Unlike timber that takes 7 years or more to mature, patchouli offers a quicker return on investment. It provides farmers with much-needed income in the short term. This helps bridge the gap while waiting for trees to grow, ensuring the sustainability of reforestation efforts as well as the financial well-being of local communities.
After consulting with local farmers and essential oil industry stakeholders, we established a 0.55-hectare test field to study the viability of patchouli alongside production trees. The goal of the test field was to find out if patchouli plants could grow in Central Kalimantan’s environment and to see if we could plant patchouli alongside the trees in our reforestation efforts.
The Development and Progress of our Patchouli Pilot Project
So far, the Patchouli Pilot Project has made significant progress. We were able to cultivate patchouli on our test field alongside agroforestry trees.
In 2024, we completed two successful harvests and produced patchouli oil that meets Indonesian National Standards. While the patchouli alcohol content is not the highest possible, it is well above the market minimum standard. This means that the oil has strong market potential.
In December 2024, we built a patchouli nursery and procured a distillation machine. Distilling raw patchouli leaves into oil is crucial to transforming them into a valuable product. Therefore, it is important to develop distillation equipment to improve oil quality and production efficiency.
The Value Chain division works with experts to improve soil fertility and reduce acidity for better patchouli growth. Training programs are also being offered to farmers to help them produce high-quality patchouli commodities. This helps smallholder farmers earn more by selling their oil at the best prices, making patchouli farming a sustainable livelihood.
The Next Step
In January 2025 we are gearing up for a major step forward. We plan to distribute patchouli seedlings to farmers in Central Kalimantan. This timing aligns with the rainy season, providing ideal conditions for the plants to thrive. With the seedlings ready for planting, farmers can begin cultivating patchouli in their fields, taking advantage of the fertile environment that Central Kalimantan offers.
The Patchouli Pilot Project is more than just an agroforestry initiative. It represents a holistic approach to community development. We foster collaboration between farmers, local communities, and industry stakeholders, creating a strong support network. We provide training for farmers to empower them with sustainable agricultural practices, enabling them to adopt methods that are environmentally responsible, economically viable, and socially beneficial.