Indonesian Political, Business & Finance News

Official fears for future of Timor sandalwood firms

| Source: JP

Official fears for future of Timor sandalwood firms

JAKARTA (JP): Businesses related to sandalwood (santalum
album), the main export commodity from the island of Timor, are
under threat of collapse due to the over-exploitation and poor
regeneration of resources, an official said.

"The sandalwood industry on Timor will become part of history
some day if there no preservation efforts, as required by the
East Nusa Tenggara provincial administration, are implemented,"
the head of the Development Planning Board's North Central Timor
office, Alex Thaal, told The Jakarta Post Monday.

The preservation efforts, he said, include encouraging the
public to plant sandalwood trees and reducing the logging quota
for each producer regency.

Indonesian sandalwood trees grow only on Timor, with the
regencies of Kupang, North Central Timor, South Central Timor and
Belu being the main growing areas.

The oil refined from sandalwood is used to make perfume, while
the wood is used to make handicrafts. A sandalwood tree matures
and becomes aromatic at the age of between 50 and 60 years.

Thaal said the Timorese have been discouraged from planting
sandalwood trees by a local law saying that all sandalwood trees
growing on the island belong to the government.

"Now, a new law has been enacted which states that those who
plant sandalwood trees on their plots of land will share 25
percent of the earnings derived from them," said Thaal.

Regarding the logging quotas, Thaal said that the East Nusa
Tenggara provincial administration, for example, has reduced the
quota of North Central Timor to about 75 tons this year from 150
tons last year.

"The provincial administration will continue decreasing the
quota," he said.

The head of East Nusa Tenggara's forestry office, Ilianto
Boediman, was quoted by Kompas as saying that Indonesia, with its
annual output of 300 tons, is the world's third largest
sandalwood harvester after India and Australia.

India harvests 3,000 tons of sandalwood per annum and
Australia 453 tons.

Indonesia's sandalwood tree population decreased from 506,752
in 1965/66 to 493,655 in 1983/84 before increasing back to 685,52
in 1990/91, many of which were young trees.

A kilogram of sandalwood costs about Rp 7,500 ($3.20). (jsk)

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