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Ornamental Plants - Directorate General for National Export ...

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market review<br />

4. Marketing<br />

In regard to the market <strong>for</strong> cut flowers in Indonesia,<br />

it must be noted that no integrated domestic<br />

market exists. The market consists of a number of<br />

confined markets, larger cities and their supply<br />

regions. A distinction should be made between<br />

Jakarta and other larger cities in Indonesia. In<br />

Jakarta giving flowers <strong>for</strong> all social occasions, such<br />

as birthdays, weddings, illness, business attention<br />

etc. has become rather common and substitutes <strong>for</strong><br />

personal visits. As a result of this, Jakarta has<br />

become by far the largest market <strong>for</strong> flowers in<br />

Indonesia and consumes approximately 76 percent<br />

of the total consumption (Table 2). In Jakarta more<br />

than 900,000 stems of cut flowers are sold per week,<br />

accounting <strong>for</strong> an approximate value of US$ 5.1<br />

million per year, whereas the total amount <strong>for</strong> all<br />

major cities is estimated as US$<br />

6.8 million per year.<br />

5. Potential For Cut Flower<br />

Production Development<br />

Tissue culture technology <strong>for</strong><br />

multiplication of plantlets is<br />

rapidly developing and has been<br />

accepted on a wide scale <strong>for</strong><br />

several flowers and ornamental<br />

plants. Advantages lie in less time<br />

needed, uni<strong>for</strong>mity of produced<br />

plantlets and virus free planting<br />

material. Indonesia has ideal climatological<br />

conditions <strong>for</strong> growing tropical plants. Presently an<br />

interesting domestic market has developed, where<br />

relatively high prices are fetched, based on the<br />

scarcity of the product more than the actual cost<br />

price. To be able to achieve the quality standards<br />

required in the international market and its effective<br />

marketing, cooperation with international growers<br />

is a feasible alternative to obtain results in the not<br />

too distant future <strong>for</strong> Indonesian growers. In order<br />

to enter the world market to some significant extent<br />

Indonesia needs to start selection and breeding of<br />

its own varieties. A substitute <strong>for</strong> soil mixed with rice<br />

husk as a growth media <strong>for</strong> ornamental plants is<br />

required in case of export since most countries<br />

prohibit soil and rice husk to enter their territories.<br />

6. Constraints in Cut Flower Production<br />

Development<br />

a) Although several commercial tissue culture<br />

laboratories are in operation in Indonesia, all have<br />

limited operations to serve their own requirement<br />

or a small circle of associated farmers. By doing so,<br />

the scale of operations remains too small <strong>for</strong> a<br />

profitable undertaking and consequently<br />

investments in motherstock of planting material are<br />

not made.<br />

b) No specialized nursery <strong>for</strong> young ornamental<br />

plants is in existence. Growers are not able to follow<br />

the market trend quickly and multiplication is done<br />

in an inefficient way.<br />

c) Indonesian private growers of ornamental plants<br />

and flowers were left on their own <strong>for</strong> variety testing<br />

and developing appropriate cultivation methods.<br />

This has resulted in high cost and slow spread of<br />

adapted varieties and cultivation techniques.<br />

Support from RIOP as technology generating<br />

institution and BPTP <strong>for</strong> transfer of technology is<br />

needed in every region.<br />

d) Institutional promotion to<br />

increase popularity of flowers and<br />

ornamental plants in Indonesia is<br />

still limited. Similarly, in<strong>for</strong>mation<br />

about flowers and plants which can<br />

be supplied from Indonesia is<br />

almost lacking in the world market.<br />

e) Most of the cut flower production<br />

centers are scattered and located<br />

too far from the distribution point<br />

or air port.<br />

f) High interest rate on credit <strong>for</strong><br />

capital on agribusiness which is treated the same as<br />

other commercial investments.<br />

g) Limited area/land at reasonable price.<br />

7. Conclusions<br />

Research on cut flowers and ornamental plants is<br />

very important to support and solve the problems<br />

faced by growers. The cooperation between private<br />

and public institutions needs to be strengthened<br />

and developed.<br />

The development of the domestic market is a<br />

prerequisite <strong>for</strong> the development of export which<br />

requires high standard quality and large volume as<br />

well as competitive price.<br />

The development of a well established wholesale<br />

market is needed in Jakarta to have a positive<br />

impact on the development of this sector.<br />

The short production cycle of cut flowers and<br />

ornamental plants, makes the country an ideal place<br />

<strong>for</strong> multiplication of planting material, which needs<br />

to be explored.<br />

EXPORTNEWS INDONESIA DJPEN/MJL/XXI/09/2011 9

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