"Apart from increasing our trade volume, the direct trade will also create a higher price for farmers and national eaglewood businesses as no fee will be quoted for the third party now nor from China," Forestry Minister Zulkifli Hasan said here on Monday.
In remarks at a ceremony to mark the first direct eaglewood shipment to China, Zulkifli said in the international market , demand for eaglewood reaches 4,000 tons a year and China had been one of the biggest eaglewood importers taking in 500 tons a year.
So far most of Indonesia`s eaglewood exports have gone to Saudi Arabia, the Arab Emirates, Taiwan, Singapore, Hong Kong, the US and the European Union due to difficulties in penetrating directly into China.
In the past five years Indonesia`s total eaglewood exports reached 170 to 573 tons with foreign exchange income in 2006 totalling US$26,086,350 and rising to US$85,987,500 in 2010.
"We are targeting exporting eaglewood that come not only from natural forests but also from farms in the years to come," he said.
Exports of eaglewood have been done in the form of chips, blocks, powder and oil.
Zulkifli said the country`s eaglewood potentials are estimated to rech 600,000 tons a year with production centers found in Papua, Kalimantan and Sumatra. The price of Indonesian eaglewood is ranging between Rp100,000 and Rp150,000 per kilogram depending on its quality.
Right now eaglewood farming has been started to be developed in Bangka, Sukabumi, Bogor, Lampung and East Nusa Tenggara. "If we just rely on natural forests the supply would be limited," he said.
The chief of the Indonesia Eaglewood Association, Mashur, said so far that eaglewood direct trade to China had been hampered by mafia syndicate. "It was very difficult for us to enter directly into that country`s market because the product is very expensive," he said.
So far, he said, 98 percent of supply from Indonesia comes from natural forests. "The potential in Indonesia is still very high in view of the vast forests in the country," he said.
Indonesia`s best quality eaglewood (aquilaria filaria) comes from East Kalimantan forests sold up to Rp150 millino per kilogram. "In China it can be sold up to Rp400 million per kilogram while in the Middle East its price may reach Rp300 million per kilogram," he said.
In the export destination countries the wood is used for medicines, perfume raw materials, aroma therapy, soveneirs and religious rite materials.(*)
Editor: Aditia Maruli Radja
Copyright © ANTARA 2011
