PTPN eyes Canadian tea market

Wahyoe Boediwardhana, The Jakarta Post, Nusa Dua, Bali

State-owned plantation firm PT Perkebunan Nusantara (PTPN) VIII would like to expand its exports to Canada, where demand for the commodity is increasing.

Firm president director Abdul Halik said on Wednesday on the sidelines of the second International Tea Business Conference that Indonesian tea only accounted for 6 percent of the tea consumed in Canada.

"The Canadian tea association told me that domestic demand has increased and that the country needs to import more tea. They said it was an ideal opportunity for Indonesia to expand our market there," he said.

Abdul said expanding into Canada would help Indonesia, the fifth biggest tea exporter in the world, increase production, which last year reached 88,176 tons, down from 100,185 tons in 2003. Some 85 percent of domestic tea production is exported to Europe, Saudi Arabia, Iran, Jordan, Egypt, Russia and America.

Meanwhile, Minister of Agriculture Anton Apriyantono said the government planned a thorough evaluation of all taxes on agricultural products and their derivatives.

"We do not want to rush into a decision. I have asked agriculture ministry officials to discuss the issue thoroughly," he said.

Abdul said Indonesian tea producers were at a disadvantage compared to their compatriots from other countries because of the high import tax imposed by other countries.

He said Pakistan placed a 30 percent export tax on Indonesian tea, while Sri Lanka, India and Kenya only had to pay a 5 percent export tax.