Bureaucracy hampers export of orchids
Bureaucracy hampers export of orchids
Wahyoe Boediwardhana, The Jakarta Post, Denpasar
Indonesia is home to more than 5,000 species of orchid, or one- fifth of the world's total. Unfortunately, in terms of the orchid business, Indonesia is still behind other countries in the region.
Thailand remains the largest orchid-exporting country in Asia. Singapore is the second while Indonesia is the third, followed by Malaysia and New Zealand.
In 2002, Indonesia earned US$3.9 million from the export of orchids -- both in the form of fresh-cut flowers and potted plants. In the previous year, the sum was $2.4 million, while in 2000 it was only $2.3 million, according to Budi Marwoto, Director of Decorative Flowers at the Ministry of Agriculture.
United Nations statistics showed that the total value of orchid exports and imports in the world reached US$150 million in 2000. About US$128 million of that amount was generated from the sale of fresh flowers.
The UN recorded that in 2000 Thailand made US$50 million from the export of fresh-cut orchids and another US$4 million for potted orchid plants. Most were sent to Japan.
Singapore's revenue from the export of orchids in the same years was US$7.7 million, and US$8,000 for orchid plants.
The problems faced by Indonesian orchid exporters is an issue that will be addressed in the third National Orchid Week, due to take place from Sept. 3 to Sept. 9 at Istana Kuta Galeria, Bali. The annual event, which has the theme, Globalizing Indonesian Orchids, will also feature a number of contests, including those for best orchids, flower arrangements, landscaping and painting.
Eisrin Risri Alda, head of the subdirectorate of decorative plants at the ministry, said that Indonesia was unable to compete with those other countries because of the high prices set by farmers. This was due to bureaucracy in export procedures that require farmers to spend much time and money. Besides, they also have to pay taxes of as much as 40 percent, like the taxes on industrial products.
"In order to export (the products), farmers must jump through many hoops," Risri said.
In comparison, farmers in Thailand and Singapore have a much more streamlined process and also receive a subsidy from their respective governments.
Risri said that the Indonesian government did not have sufficient funds to subsidize the country's orchid farmers. Therefore, the exporters could only hope that the government would reduce the taxes from 40 percent to 20 percent.
Another problem facing Indonesian orchid farmers is the poor application of technology, according to Tjokorda Gde Oka, head of the sub-agency for the processing and marketing of products at the Bali Agency of Agriculture and Food Plants.
Most farmers do not have a vast plot of land and depend much on nature instead of technology. As a result, they cannot achieve high yields.
In Indonesia, a large-scale farmer may have land extending from 40 acres to 2 hectares, while in other countries, large farmers have five to 10 hectares of land.
"They apply agro-climate technology. With greenhouse technology, they can control the climate in accordance with the needs of each kind of orchid. Here, we depend much on nature. If there is bad weather, the harvest is also bad," said Oka, who is the deputy chairman of the organizing committee of the upcoming orchid week.
Erwan Dwiprapto Prijambodo, 48, who has run an orchid business in Bali for 20 years, admitted that farmers had problems with the technology.
"So far, no one has told them how to grow orchids well. The officials from the agriculture agency do not know much about orchids," he said.
Small-scale farmers also complain about the high price of seeds. On Java, a bottle containing 60 seeds costs Rp 10,000 while on Bali, it costs Rp 25,000, Erwan said.