Jakarta - Indonesia's jamu (medicinal herbs) industry is estimated  to grow 20 percent and reach a total value of Rp 7.2 trillion in 2008, chairman of the Indonesian Jamu Association (GP Jamu) Charles Saerang said.

"The growth of Indonesia's jamu industry is  indicated by the increasing use of jamu as the basic materials in medications   recommended by the Indonesian Physicians Association (IDI) and the Health Ministry," Saerang said here Tuesday.

He spoke to newsmen after the signing of a memorandum of understanding on cooperation between GP Jamu and  banks providing  non-collateral loans for small-scale  businesses (KUR).

Jamu-based industries and  tourism were showing remarkable performance as they were growing by nine percent  per year with  growth of the herbal spa business even recorded at 14 percent per year, he added.

However, he admitted  the growth of Indonesia's jamu industry was  still lagging  behind those in Malaysia and other Asian countries. "Malaysia's trade in traditional medicines is now worth US$1.5 billion while for the Asian region the figure is US$6.5 billion," he said.

In Indonesia, the industry  needed to be further developed as the country's jamu trade now  only reached US$720 million while the country actually had the advantage as a producer of medicinal herb materials.

Indonesia, he said, should restrict medicinal herb material exports, especially to India, so that it could enjoy the added value of the products. GP Jamu membership comprised 129 large-scale medicinal herb producers and 1,037 small-scale producers including home industries.

According to a projection made by the Indonesian Chamber of Trade and Industry (Kadin), Indonesia's medicinal herb trade would reach  Rp10 trillion by the end of 2008.

- Source : Antara News Agency, 28 May 2008