RI's flower industry a late bloomer<\/p>\n
JAKARTA (JP): A vast country blessed with a wealth of natural
\nresources and a fertile tropical climate, Indonesia should
\nrightfully belong among the top ranks of the world's flower
\nproducers.<\/p>\n
But studies show Indonesia's flower production lags far behind
\nmany other countries, even small ones like the Netherlands, the
\nworld's largest producer of flowers.<\/p>\n
According to the Indonesian Flower Association (Asbindo),
\nproduction in the country last year reached Rp 57.5 billion
\n(US$23.59 million), a fraction of the US$250 million recorded by
\nneighboring Malaysia.<\/p>\n
A paltry 0.5 percent of Indonesia's production finds its way
\nto the world's floricultural market. Most of this amount is
\nexported to Singapore, which then reexports the flowers after
\nhiking prices by more than 100 percent.<\/p>\n
The association predicts that by 2005, exports of flowers will
\nreach between $310 million and $714 million in a world market of
\n$120 billion.<\/p>\n
Ismeth Abidin, an advisor of the association, attributed
\nIndonesia's low production to the poor infrastructure in the
\nindustry, encompassing the quality of human resources, seedling
\ntechnology and the distribution system.<\/p>\n
\"We are far behind other countries in terms of infrastructure
\nfor the flower industry, although we have so much potential,\"
\nIsmeth said.<\/p>\n
Indonesia still trails other countries in cultivation of
\nseedlings, he said, despite the fact that the country was the
\nsecond largest producer of the germ plasm, the material to
\ndevelop seeds.<\/p>\n
Most of the seedlings in the country are still imported, and
\ntheir import makes up between 30 and 35 percent of the total
\nproduction cost, he said.<\/p>\n
This inevitably caused higher prices of flowers in Indonesia.
\nA bunch of flowers selling for Rp 5,000 to Rp 7,000 here would
\ncost around Rp 1,200 in Malaysia, he said.<\/p>\n
Developing seedlings for new species could take about seven
\nyears, he said, adding that Indonesia would never catch up with
\nthe rest of the world at this rate. In the Netherlands, there are
\n13,500 kinds of species, and about 3,000 in Thailand.<\/p>\n
\"We need more cooperation with foreign investors with better
\ntechnology, like Switzerland, to develop better seedlings,\" he
\nsaid.<\/p>\n
Ismeth said another challenge was the poor distribution of the
\nproducts due to the inefficient transportation system.<\/p>\n
\"We are not ready to export the flowers using our own
\ntransportation system,\" he said.<\/p>\n
Airlines would rather carry more lucrative commodities than
\nflowers.<\/p>\n
Ismeth said changes in the situation would not be achieved
\nwithout the support of the government.<\/p>\n
He said the government had yet to fully participate in the
\nfloriculture development. The industry still lacked incentives
\nand the value-added tax was very high.<\/p>\n
\"One has to provide at least Rp 30 million to manage a hectare
\nof flowers,\" he said, adding that the government should subsidize
\nthe industry to improve technology.<\/p>\n
\"Upgrading the infrastructure takes about 20 years of
\nresearch, and we need to start from now.\"<\/p>\n
He touted the rewards to be gained. \"Flower production can
\ncontribute as much as Rp 1.5 billion per hectare of land, but we
\ncurrently generate about Rp 950 million.\"<\/p>\n
Prospects<\/p>\n
A concerted strategy will help the industry develop, Ismeth
\nsaid.<\/p>\n
\"We can expect to contribute 10 percent of the world's supply
\nof flowers by 2005, or around $12 million, if we take stock of
\nour strength and weaknesses,\" he said.<\/p>\n
\"Judging from the amount, the world's largest producers of
\nflowers will face barriers of limited land areas and high
\nproduction costs. They would most likely shift their attention to
\nAsian countries, and this is when we have quickly grab the
\nopportunity.\"<\/p>\n
Indonesia still has about 60,000 hectares of land available
\nfor floriculture estates. These are located on elevations similar
\nto those of Columbia, which is the second largest flower
\nproducers in the world, he said.<\/p>\n
Independent associations like Asbindo, which groups 20 medium
\nto large floricultural companies, can continue taking an active
\nrole in the development of the industry.<\/p>\n
Through conducting a monthly forum for information exchanges
\non seedling cultivation and technology, the companies can expand
\ntheir business networks. Asbindo is also seeking to lower the
\nproduction costs by allowing its members to place collective
\norders for materials such as seedlings collectively.<\/p>\n
More importantly, the association is at the forefront in
\nadministrative matters, including setting quality and price
\nstandards, as well dealing with government regulations.<\/p>\n
Ismeth said the association recorded about Rp 40 million in
\nprofit last year from production on about 120 hectares of land.
\nHe said the companies contributed about 60 percent of the
\ndomestic market production.<\/p>\n
Asbindo plans to use the profit to establish a distribution
\ncenter in the country, which would be used to determine the
\nstandard of the floricultural products. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ris-flower-industry-a-late-bloomer-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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