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1. PEPPER EXPORTS INCREASE DESPITE SLUGGISH GROWTH OF PRODUCTION.

Pepper is a potential export commodity. Last year pepper plantations declined, but production rose 5.1%. Pepper exports last year were valued at US$ 191.2 million or 68.9% of the country's earning of US$ 276.2 million from the export of spices.

Pepper plantations in the country are mainly owned by farmers. They are found mainly in Lampung, Palembang, East Kalimantan, West Kalimantan and South Sulawesi. In the past 5 years pepper plantations dwindled - from 134,689 hectares in 1995 to 120,782 hectares in 1999.

Table - 1 Pepper plantation areas, 1995-1999
Year Area Growth
 (hectar) (%)

1995 134,689 --
1996 126,632 -5.9
1997 111,263 -12.1
1998 123,584 11.1
1999 120,782 -2.3

Average growth -2.3



Source: Directorate General of Plantation/Data Consult

Until 1997, the country's production of pepper continued to decline. In the past two years production began to rise. In 1998, production rose 0.5% to 46,660 tons and in 1999, it increased further by 5.1% to 52,188 tons. Long drought was blamed for the sluggish growth of production.

Table - 2 Indonesia's pepper production, 1995 - 1999
Year Production Growth
 (tons) (%)

1995 59,000 --
1996 52,100 -11.7
1997 49,600 -4.8
1998 49,660 0.1
1999 52,188 5.1

Average growth -2.3



Source: Directorate General of Plantation/Data Consult

Exports valued at US$ 191.2 million

The types of pepper exported by Indonesia include green pepper, white pepper, black pepper and other types. White and black pepper dominate exports. In 1999, exports of white and black pepper totaled 35,531 tons valued at US$ 187.7 million or 98.2% of the total exports. See the following table.

Table - 3 Exports of pepper, 1995 - 1999

Tons / (US$'000)
Year Green White pepper Black Others Total
 pepper pepper

1995 1,055 20,035 36,094 597 57,778
 3,071 69,837 80,726 1,796 155,430
1996 280 17,052 19,150 358 36,840
 802 55,665 40,596 1,801 98,864
1997 375 21,122 11,388 501 33,386
 877 118,334 41,198 2,735 163,144
1998 411 17,784 21,162 580 39,937
 1,186 97,361 86,700 3,670 188,917
1999 479 23,873 11,658 284 36,294
 1,694 140,676 47,038 1,834 191,242



Source:CBS/Data Consult

Singapore the largest buyer

Indonesia exports pepper mainly to Singapore. Last year exports to that country totaled 16,413 tons valued at US$ 100,9 million or 45.6% of the total exports. Other major buyers are the United States and the Netherlands. See the following table.

Table - 4 Pepper exports by countries of destination, 1999

Tons / (US$'000)
Country of Green White Black Others Total
destination pepper pepper pepper

Singapore 84 16,435 2,779 19 19,317
 470 99,185 11,420 13 111,088
U S A 76 2,154 6,132 O 8,362
 351 13,259 25,317 0 38,927
Netherlands 81 1,935 962 255 3,233
 456 8,949 3,842 1,806 15,053
Japan 86 857 16 0 959
 169 5,145 66 0 5,380
Germany 9 558 228 9 786
 0 3,163 948 0 4,111
India 9 45 391 9 436
 0 249 963 0 1,212
Taiwan 0 256 2 1 259
 0 950 1 1 952
Malaysia 8 111 28 9 139
 14 717 85 2 818
Other countries 114 3,522 1,120 9 4,765
 234 9,059 4,396 12 13,701

Total 479 23,873 11,658 284 36,294
 1,694 140,676 47,038 1,834 191,242



Source:CBS/Data Consult

Imports relatively small

Indonesia also imports pepper though small in volume and value. In 1999, imports totaled 2,071 tons valued at US$ 9.2 million.

Processed products

Pepper is also processed in the country into pepper oil and oleoresin. Pepper oil is yellow green in color containing aromatic with typical hot smell made up of a compound of caryopylene, dipentene, alpha pinene, piperanol and linonene. Pepper oleoresin is a liquid containing the compound of piperine, chavicine, piperidine, resin and alkaloid.

Oleoresin and pepper oil, apart from being exported are used as a feedstock in pharmaceutical industry, as food flavoring agent, canned meat and an ingredient for strong drink.

Pepper waste having economic value is pepper rind which accounts for 10% to 15% of pepper content. The waste also has pepper oil 2% and pepper oleoreisn 15% of pepper in weight.

Consumption up

In addition to households consumers, pepper users include instant industry such as PT Indo Food Sukses Makmur, the country's largest producer of instant noodle.

In the past 5 years, the country's production of pepper fluctuated and tended to decline. Based on Data Consult's record, the country's consumption of pepper totaled 1,256 tons, up to 17,965 tons in 1999.

Table - 5 Estimate of Indonesia's pepper production, 1995 - 1999

(Tons)
Year National Growth
 consumption (%)

1995 1,256
1996 15,289 1,117.3
1997 17,247 12.8
1998 9,739 -43.5
1999 17,965 84.5



Source: Data Consult
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Comment:1. PEPPER EXPORTS INCREASE DESPITE SLUGGISH GROWTH OF PRODUCTION.
Publication:Indonesian Commercial Newsletter
Article Type:Brief Article
Geographic Code:9INDO
Date:Aug 22, 2000
Words:873
Previous Article:IRIAN JAYA STILL OPEN TO NEW INVESTMENT IN TIMBER INDUSTRY.
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