Govt decides to stop cutting clove trees<\/p>\n
JAKARTA (JP): The government has decided to stop the
\nconversion of clove trees into other crops as cigarette makers'
\ndemand for the spice is on the rise.<\/p>\n
Minister of Cooperatives and Small Enterprises Subiakto
\nTjakrawerdaya said here yesterday after meeting with President
\nSoeharto that the government would now pursue the clove
\nintensification program to boost production.<\/p>\n
"The clove crop conversion program will be stopped and we'll
\nemphasize the intensification program instead," Subiakto told
\njournalists at Bina Graha presidential office.<\/p>\n
At the meeting, Subiakto was accompanied by Minister of
\nIndustry and Trade Tunky Ariwibowo and Minister of Agriculture
\nSjariffudin Baharsyah.<\/p>\n
Subiakto estimated clove production this year at 70,000 tons,
\nwhile consumption by cigarette producers would reach 115,000
\ntons.<\/p>\n
"Demand for clove is projected to increase steadily in the
\ncoming years. Therefore, we need a new policy to cope with the
\nnew supply-demand equation," Subiakto said.<\/p>\n
Last year, the government launched a massive clove conversion
\nprogram to reduce clove oversupply as annual clove production was
\nestimated at about 110,000 tons, while consumption was about
\n80,000 tons.<\/p>\n
The controversial conversion program, proposed by the
\nprivately run Clove Stock Management Agency (BPPC) which holds
\nthe clove marketing monopoly, had met strong opposition from
\nfarmers.<\/p>\n
But the government went ahead with the program aimed at
\nhalving clove plantation areas of 515,500 hectares at the time by
\nchopping down more than 50 million clove trees and replacing them
\nwith other crops, including coffee, vanilla, cocoa and other cash
\ncrops.<\/p>\n
Through Presidential Instruction No. 4\/1996, the government
\nstipulates that clove-cigarette producers must pay Rp 1,000 (38
\nU.S. cents) to the "conversion fund" for every kilogram of cloves
\nthey buy from the agency.<\/p>\n
Subiakto said the government would use the existing conversion
\nfunds to finance the intensification program in 10 major clove
\nproducing provinces.<\/p>\n
The 10 provinces are Aceh, Lampung, West Java, Central Java,
\nEast Java, Bali, Southeast Sulawesi, South Sulawesi, North
\nSulawesi and Maluku.<\/p>\n
If local clove production could not meet increasing clove
\nconsumption by cigarette producers, Indonesia might import the
\ncommodity from Zanzibar, Subiakto warned.<\/p>\n
The minister also reaffirmed his support for BPPC's monopoly
\nin clove trade, saying it had benefited all parties involved,
\nespecially farmers.<\/p>\n
BPPC, chaired by President Soeharto's youngest son, Hutomo
\nMandala Putra, was granted the clove-trading monopoly in early
\n1991.<\/p>\n
Since then, farmers have been obliged to sell their cloves to
\nthe agency -- through village cooperatives -- and producers of
\nclove-blended cigarettes must buy their cloves from the agency.<\/p>\n
In 1991, BPPC was given Rp 700 billion in low-interest loans
\nby the central bank, Bank Indonesia, to help it procure cloves
\nfrom farmers and cover stockpiling costs.<\/p>\n
The government has set the floor price for standard quality
\ncloves at Rp 8,000 per kilogram.<\/p>\n
But farmers only receive Rp 5,000 per kilogram for the cloves
\nthey sell to BPPC. The agency keeps Rp 2,000 of the price in
\ncompulsory farmer savings funds and Rp 1,000 in conversion fund
\nmoney.<\/p>\n
Subiakto said the government would likely increase the clove
\nproducer price to Rp 5,500 a kilo, starting next year.<\/p>\n
"But that is for next year. For this year, farmers will still
\nget Rp 5,000 a kilo," the minister said. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-decides-to-stop-cutting-clove-trees-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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