Indonesia's New Kratom Export Regulations (Permendag No. 20/2024) Explained
A clear breakdown of Indonesia's Trade Ministry Regulation No. 20/2024 on kratom exports — what changed, why, and what it means for international buyers.
KRATOM
Lenny Septiani
7/18/20262 min read
For over a decade, kratom exports from Indonesia operated with relatively loose oversight, drawing criticism both from Indonesian lawmakers concerned about the plant's domestic reputation and from importing countries dealing with inconsistent product quality. In October 2024, Indonesia's Ministry of Trade introduced Regulation No. 20, formalizing export standards for the first time at this level of detail. Here's what changed and what it means for buyers.
Why Indonesia Regulated Kratom Exports
Indonesia has historically supplied around 95% of the world's kratom, with West Kalimantan (West Borneo) as a key growing region. Despite this dominant market position, the export trade lacked standardized quality controls, which contributed to recurring issues abroad — including US FDA import alerts citing contamination concerns like salmonella. Domestically, kratom's legal status has also been debated among Indonesian lawmakers for years. Permendag No. 20/2024 was introduced partly to address both pressures: improving product credibility internationally while establishing a formal, trackable export framework at home.
What the Regulation Requires
The key provisions of Permendag No. 20/2024 include:
Export form restrictions. Raw or semi-processed kratom leaf can no longer be exported directly. Kratom must be processed into powder form before it leaves the country.
Sterilization requirements. Processing must include sterilization steps, directly addressing the contamination concerns that had previously triggered foreign import alerts.
Minimum alkaloid concentration standards. The regulation sets minimum mitragynine concentration levels, aiming to standardize product potency and quality across exporters.
Shipment size limits. Caps on shipment volume were introduced partly to help smaller farmers and processors compete alongside large-scale exporters, rather than allowing the market to consolidate entirely around bulk players.
The Market Impact
These changes have had real cost implications. Crushed-leaf kratom prices reportedly rose 100–400% following implementation, reflecting the added cost of compliant processing and sterilization. For buyers accustomed to lower legacy pricing, this shift has required adjusting sourcing budgets and expectations.
On the positive side, the government has pointed to early compliant shipments — including one valued at over $1 million — as evidence that the new framework can support both quality improvement and continued export growth. Indonesia's Trade Minister has framed the regulation as a foundation for expanding export markets over time, rather than a barrier to trade.
What This Means for International Buyers
If you're sourcing kratom from Indonesia today, the practical takeaways are:
Expect powder, not raw leaf. Compliant exporters will supply processed, sterilized powder — this is now the standard, not an optional upgrade.
Ask for proof of compliance. A credible supplier should be able to document that their export process aligns with Permendag No. 20/2024, including sterilization and concentration standards.
Factor in adjusted pricing. Post-regulation pricing reflects real compliance costs; unusually low prices may signal a supplier operating outside the current framework.
View this as a quality signal, not just a cost increase. Suppliers working within these regulations are generally positioned to provide more consistent, better-documented product — which matters for downstream compliance with destination-market rules like the US Kratom Consumer Protection Act.
Sourcing Within the New Framework
Levana Tera Global's Kratoneo Botanics kratom is sourced from West Borneo through suppliers operating under Indonesia's current export regulations, with sterilized powder processing and batch documentation aligned to Permendag No. 20/2024. For international partners, this means a sourcing process built around current compliance standards from the outset, rather than retrofitted after the fact.
This article is for general informational purposes and does not constitute legal or trade advice. Export regulations are subject to change — confirm current requirements with Indonesia's Ministry of Trade or a qualified trade advisor before finalizing sourcing agreements.