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Remains Potential for Export


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Message from the Editor’s Desk
2 rowana is the natural resources from the rainforests all over Indonesia. With an excellent level of export, the availability of the resources and the area of Indonesia’s rainforest have been the prime part to it. The freshwater ornamental fishes mainly are collected from the Rainforest Rivers in Sumatra, West Kalimantan, Central and East Java, Bali, South Sulawesi and Papua. Many people believe Arowana can give good fortune, good luck, and long life. On the other hand, keeping Arowana is also a good thing since it is a rare fish, which is almost to face extinction. On this edition, Formcase as the winner in Primaniyarta Award 2005 is also highlighted. As the producer of office equipments, Formcase has been a well-known brand in United States, Europe and Australia. Eventhough it is not a very popular brand locally, but the domestic market is still potential to be grabbed. Next to it, the article on Natural Rubber is also mentioned. As the second biggest exporter of Natural Rubber to the world, Indonesia has been able to produce several rubber products such as tires for different vehicles. It is showing a great growth in the future. Happy reading!


Message from the Editor’s Desk

REMAINS POTENTIAL FOR EXPORT Pricy Species Breeding For Export 3 5 6 6



Published by : The Ministry of Trade, Republic of Indonesia, National Agency for Export Development (NAFED) Advisor : Acting Chairman of NAFED : Mr. Hatanto Reksodipoetro Chief Editor : Mr. Rahayubudi Editor : Djasdi Darwis, Sri Maryani Consultant : CV Kopan Jaya Reporter : TB Machroja, Donawati, Tiara Lumban Gaol Layout : Xi-ant Design Address : Jl. Kramat Raya 172, Jakarta 10430, Indonesia Phone : (62-21) 3100569 , 31904774, Facsimile : (62-21) 31901371,31901470 Website : http// e-mail:

Remains Potential for Export


prawling across its vast sea territories, Indonesia is home to world’s largest coral reef with over 50,000 square kilometers or 18 percent of the total world coral reef populations. It‘s undeniable that Indonesia’s tropical coral reefs are among the richest on earth, rivaling tropical rainforests in the biodiversity. Of about 4,000 fish species are believed to live in the world’s coral reefs. It touches on both Indian and Pacific oceans and many seas,

including the Andaman, Java, South China, Sulawesi, Banda and Arafura seas. Uniquely enough the vast array of coral reefs are many of which are poorly described or completely unknown while the country has been known for its greatest reef biodiversity in the world. There are more than 300 species of marine and freshwater ornamental fishes found in Indonesian water territories out of 1,100 or 34 percent of the world existing species, while for comparison, other tropical

countries like Sri Lanka has (165 species), Ethiopia (112 species), the Philippines (109 species), Kenya (96 species), Hawaii (60 species), Puerto Rico (49 species), and Singapore (32 species). The freshwater ornamental fishes mainly are collected from the Rainforest Rivers in Sumatra, West Kalimantan, Central and East Java, Bali, South Sulawesi and Papua. Initially, the traded freshwater ornamental fishes came from natural or wild catching. There were approximately

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62 species of freshwater ornamental fishes, which are popular in trading activities. One of the most popular Indonesia ornamental fish species is Scleropages sp. or Arowana, ancient species, which has yet to face extinction. It has a flat and large body with two pieces of moustache on the lower lips, which makes it look like a dragon. Therefore, Arowana is also named as dragon fish. Like a dragon, Arowana is deemed as a symbol of achievement: mighty and glory. Now, it has even become a sort of symbol of prestige. It looks very beautiful when flickering while swimming in the aquarium. The above reasons have prompted Department of Trade to make Arowana as a mascot of Indonesia Ornamental Fish Directory. Other names for Arowana are Dragon Fish, Baramundi, Saratoga, Pla Tapad, Kelesa, and Aruana, depending on which part of the world you are in. It is one of the most expensive and unusual aquarium fishes with a unique character. A long and sleek fish shows a great beauty and becomes aquarist’s pride and joy. Its colors range in nature from green to silver to red and to other variants with large scale having a brightly reflective sheen. The two barbells attached to the lower lip are used to sense vibrations of struggling prey on the water surface, which is then sucked into a cavernous mouth, opening like a trap door as it leaps from the surface. It is indeed capable of swallowing a

very large meal. Arowana is large and sometimes aggressive. Therefore, it is not in everyone’s taste, nor can it be housed in a standard size of aquarium. The fish has potential for rapid growth, and in most cases, it grows very quickly, especially when fed a high protein diet, reaching 24 inches and more in the aquarium. In nature, it ranges from 3 feet up for most varieties, and up to 9 feet or more for the giant South American variety. Housed in a small tank as a juvenile, it will require a 55-gallon tank in only a few months, and eventually a 175gallon or larger tank. Bigger is always better for Arowana. Studies reveal that Arowana is a primitive fish. Fossil records of this ancient and widespread family of fishes date back to 10-60 million years depending on species and continent. Arowana has evolved

through tens millions of years. It means that it is indeed a very hardy fish that is rumored to live hundreds of years. Arowana belongs to an ancient fish family, Osteoglossidae, which literally means bony-tongue. Name of “bony tongue” is derived from a toothed bone on the mouth floor. The toothed tongue bites against teeth on the mouth roof. The head is bony, and large and heavy scales with a mosaic pattern cover its elongate body. Its dorsal and anal fins have soft rays with a long base, while its pectoral and ventral fins are small. The fact that Arowana is a prehistoric relic of the past along with their unique and beautiful appearance has become a topic of conversation that adds up its popularity among aquarists, many of whom come to dote on their pet. Its charm is that the fish with its unusual shape is very fascinating. Most hobbyists who have stood watching an Arowana for a couple of minutes cannot help but notice its elongated body, large formidable mouth, and serpentine movements, executing a 180 turn and almost bumping into their tails in its process. Another attraction of Arowana to aquarium hobbyists is that it grows quite large in captivity, at least in comparison to most tropical fish species kept at home. A large fish, such as the Osteoglossum, makes a startling display of which any aquarist could be justifiably proud.


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In nature, the fish is a surface dweller, gliding just below the water surface, and keeping a sharp eye out for low flying insects to catch by surprise. So feeding Arowana is not usually a problem so long as one knows it is a surface catcher and generally will not take food from the bottom. It is usually not a particular eater, taking most carnivorous foods with gusto, but at times it could and would become finicky either demanding the same foods over and over, refusing variation, or just turning its nose opposite up at the usual foods until something new is given. It usually attacks food by coiling its body like a spring and lunging forward to engulf the prey. The acts provide a great entertainment for owners and startle visitors. It can be found in still water of lakes and rivers. It is excellent jumper and is especially jittery when first introduced to their new home, so a sturdy cover is essential to prevent a prized specimen from leaping out of its tank. Even juveniles are capable

of jumping at great distances. In the wild, Arowana pair by natural selection spends weeks courting. A pair of Arowana will chase and bite each other’s tail while courting, eventually together side by side and chasing off other fish before they

finally breed. When female is ready she will lay eggs on slow stream riverbeds, which will be up to 1/2” in diameter and are then fertilized by the male. The Arowana male then scoop up the eggs and hatch in his mouth. The fry will begin to

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leave briefly father’s mouth slowly increasing their exposure to the outside world. There will be fewer Arowana than originally consumed. It is believed Arowana when startled sometimes accidentally swallows some of the young. During this time, the father will signal the fry when there is a sign of danger and they will immediately swim back immediately for safety. The babies will have a yolk sack that they will use until they are ready to feed on their own. The fry will leave the father when they are capable of surviving on their own. An exception is for the Arapaimas who bury their eggs in the sand until they hatch. Pricy Species Arowana species found in Indonesia are Scleropages formosus and Scleropages jardini. Scleropages formosus consists of Super Red Arowana (found in Kalimantan), Golden Red Arowana (found in North Sumatra, Riau, and Jambi), Malayan Bonytongue (found in Malaysia), and Green Arowana (found in Kalimantan), while Scleropages jardini are found in Papua and in Queensland, Australia. The most expensive Arowana from Indonesia is Super Red Arowana.

It could reach a price of more than US$ 1,000 per fish. Some extensive breeding of Super Red Arowana in West Kalimantan and Riau Pekanbaru, Sumatra have several hectare of lands for cultivation of the most expensive ornamental fish. There are some reasons why Arowana is pricy. Many people believe Arowana can give good fortune, good luck, and long life. An international magazine, Tropical Fish Hobbyist Magazine (July 1985), reported a story on Arowana that once a coffee maker was suddenly rich because of keeping Arowana as a pet. It is not the only story; many tell keeping Arowana help people become rich and lucky. On the other hand, keeping Arowana is also a good thing since it is a rare fish, which is almost to face extinction. Breeding There were few records that Asian Arowana was bred successfully in aquariums. Commercial breeders of Arowana usually use large earthen ponds. When breeding in earthen ponds, ten or more mature Arowana (half males, half females) are put into the pond and natural selection is allowed to take its course. The Arowana are observed carefully.

When a pair is formed, they will chase the others away and started laying eggs. Then a net is put in to segregating the pair from the other Arowana. When the fry are free to swim, they are netted and kept in rear tanks. However, most aquarist does not have an earthen pond at home or live in a climate suitable to leaving them outside for several months. At first, it was impossible breeding Arowana in a tank due their large size when mature. Many people around the world have started trying to breed Arowana in captivity, but it is nearly impossible. One successful aquaria breeder, Mr. Hiroshi is the most respected fish breeder in Japan. To accomplish his successful breeding in the aquarium, he first has access to pairs of adult Asian Arowana that have been successfully bred in pond. So the fishes are already paired off, and have spawned once before moving into his tank. His basement is dedicated to fish breeding, which reduces stress of the Arowana. He published the first article on captive breeding of Asian Arowana in 1992 after 20 years of research on the fish. (See the January, 1992 issue of TFH). For Export Having a vast natural beauty of


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ornamental fishes like Arowana, since 1970s, Indonesia has exported them to Asia’s biggest markets, Singapore and Hong Kong. Indonesia Central Bureau of Statistics reported ornamental fish export was less than US$ 100 thousand. In 2004, it recorded to US$ 14.3 million in export value. Exports have reached 50 countries, including the United States, Japan, and European Union. Even data of Quarantine Stations at Soekarno-Hatta Int’l Airport, Denpasar (Bali), Pontianak (West Kalimantan), Riau, Jambi, Palembang (South Sumatra), West Sumatra, and Lampung, exceeded that of Central Bureau of Statistics. In 2004, it recorded 130 million in ornamental fishes export; it means total revenue was US$ 130 million (with price range of US$ 0.5-US$ 600/fish). Based on the data from httP://www.trademap. org, export ratio between freshwater and marine ornamental fishes is 52%: 44%. It means 52% of ornamental fish export is from freshwaters. Ornamental freshwater fish export quantity in 2004 was only 830,576 kilograms out of 5,571,068 kilograms in total exports of ornamental fishes

in 2006. It is nearly equal as the price per kilogram of freshwater ornamental fish is much higher. However, since 1990s many of Indonesian original species have been cultivated as among others, Sclerophages formasus, Melanataenia, and Glassolepis. Even people have bred the Bala shark and Botia macracanta, which were originally imported. Other imported freshwater ornamental fishes which is also bred, include, among others, Discus (Symphysodon discus), Neon Tetra, Red Noise, Blue Lamp, Tiger Fish, Hafistobranga, Chalceus macrole pidatus, and other species, approaching a total number of 240 species. The production centers of f r e s h w a t e r ornamental fishes in Indonesia are North Sumatra, Riau, Jambi, South Sumatra, Jakarta, West Java, East Java, West Kalimantan, East Kalimantan, South Sulawesi, and Papua. According to data from the Ministry of Marine Affairs and Fisheries, the annual total production of Indonesian freshwater ornamental fish is 60 million and there are about

48,000 farmers throughout Indonesia. Companies engaging in the business include those from small, medium, to large-sized enterprises. Most farmers have only 100 square meter lands for raising fishes. Some of them even carry out the cultivation in the front house garden. Such farm operation is named as the people’s economy. In 1980, Minister of Agriculture of the Republic of Indonesia made an announcement through circular letter on Arowana’s preservation. With the assistance of the government, people work together to set up Arowana’s breeding places all across Indonesia. Ornamental fish exporters from City Jakarta, Surabaya, Semarang, Jogjakarta, Medan and other big cities, continue to build

Arowana’s breeding places. As one of the Indonesia’s favorable export commodities, authorities should have taken a special consideration of Arowana breeding. Arowana remains potential and worth for export. Everyone has to work hard to meet continuously soaring world’s demand on Arowana.

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Quality of Indonesia Made Office Furniture Equal to the Developed Country Producers

T Formcase Industries was founded in 1962 in Medan, North Sumatera by duo brothers Edwin Manan and John Manan. They started a home industry business producing home and office furniture by applying simple tools and machineries. In 1983, Robert Manan, son of Erwin Manan joined the company and took initiative to transforming home based industry to mass product industry by deploying computerized automatic machines. The products are launched to the market with Grand Furniture Brand which is positioned as mid class products.


Most consumers of the developed countries deem that Asian Office Furniture products especially from Indonesia are shoddy and have low quality. Company’s dedication toward quality and design eventually paid off, winning International recognition and receiving ISO 9001 Certificate from the UK based quality certification body, Lloyd. Formcase is the first Indonesian Office Furniture company receiving ISO 9001 Certificate. With the international recognition, FORMCASE is positioned as luxurious brand which is sold in the five continents. The corporate achievement has changed


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the developed country consumers’ negative images. Hence, Indonesia made furniture is equal in its quality to those products made in the developed countries as Europe, the USA, and Australia. Both Formcase Industry brands are developed for local and export market but with different market positions: o Formcase brand is positioned as luxurious products. o Grand Furniture brand is positioned as mid level products. In 1999 despite economic crisis hit Indonesia, with its capacity to reach international market, the company has been able to develop products for export by opening branch in Perth, Australia. In 2001, PT Formcase Industries opened its branch in Atlanta, the USA, world’s biggest furniture market. The office in Atlanta is equipped with Distribution Warehouse facility reaching all states in the United States, Canada, Latin America and Europe. Besides opening overseas branches, business development is carried out by selling its products through: Dealer / Distributor and Sales Representatives spread in the five continents. In the year 2004, Formcase was selected to occupy permanent showroom in Merchandise Mart, Chicago, world’s biggest Design Center Office Furnishing frequented by millions of visitors every year. Only those world class companies are allowed to occupy Design Center. PT Formcase Industry is the only Indonesia and Asia’s Office Furniture Indonesia producer occupying the space in showroom there. PT Formcase Industry

is equal to the world’s biggest and outstanding Office Furniture producers as: Steelcase, HON, Herman Miller and Haworth. In 2005, PT Formcase Indusrty won Primaniyarta Award from the Government of the Republic of Indonesia, held by the Department of Trade, as the company which had achievement in increasing non-oil and gas export with the category of “Global Brand Builder”. PT. Formcase Industries has vision to become a world class office furniture company whose products made by Indonesian will bestow prestige to the consumers with competitive prices, quality, and world class quality and design as well as winning recognition of consumers in the five continents as global brand from Indonesia.

Jl. Kalisabi I Km. 4 Cibodas Tangerang 15138, Banten Phone : (62-21) 5524348 Facsimile : (62-21) 5525044 E-mail/Website : / , President Director : Halizah Abdul Manan Director : Sony Manan, Commissioner : Ilhamsjah Abdul Manan Products : Furniture/ office furniture Brand : Formcase, Grand Furniture

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and the remaining of 8.4% were private companies. The above number could swell by making use of the farmers’ lands, which fit to the rubber plantation and have yet intensively been used to boost their incomes. The rubber plants were originated from the Latin America, especially Brazil. The province of North Sumatera is the Indonesia’s biggest rubber producer with those giant rubber companies as the state-owned PT Perkebunan Nusantara (PTPN) II and III, publicly-listed PT Bakrie & Brothers as well as publicly-listed PT PP London Sumaetra. The other big rubber producer regions are Riau province (PTPN V), South Sumatera, Jambi and Lampung (PTPN VII), West Kalimantan and Central Kalimantan (PTPN XIII), West Java (PTPN VIII), Central Java (PTPN IX), East Java (PTPN XII), South Sulawesi (PTPN XIV) and Nanggroe Aceh Darussalam (NAD) (PTPN I). The rubber plants need certain climate and soil to support their growth. The areas that fit to the rubber plants have 150C South Latitude and 150 North Latitude with the optimum of annual rainfall from 2,500 mm – 4,000 mm and the rainy days are annually around 100 to 150 HH. The rubber plant will grow optimally in the lowland with the height of 200 meter from the sea surface and the optimum temperature from 250C - 350C. The rubber plant needs six years before tapping the latex for crops. The products with natural rubber material are as SIR, RSS and thick latex. Its downstream products have well prospective in world market. Indonesia gives contribution to 70% world’s rubber production and tire factories absorb nearly 90% Indonesia rubber products. The market segment needs natural rubber with the medium quality as SIR or TSNR (Technically Specified Natural Rubber). Indonesia also gives its rubber supplies to the world’s outstanding brands as Goodyear and Cooper (the

The natural rubber is an export commodity that is able to give boost to the Indonesia’s foreign exchange contributions. Its plantation fits to certain lands of which most locations are in the areas of Sumatera and Java. The Indonesia’s rubber plantation in 2004 was 2,769,800 ha with the production capacity of 4,095,000 ton nationwide. Of the number, 84.5% were rubber plantations belonging to the people, 7.1% were the state-owned plantations


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USA), Continental (Germany), Michelin (Franch), Bridgestone, Yokohama and Sumitomo (Japan), Hankook dan Kumho (Korea). For Indonesia, the rubber supplies go to Gajah Tunggal, Bridgestone, Goodyear and so forth. Numerous other industries using rubber products of thick latex are among others wire insulation industry, sole of the shoe, gloves, condom, baby’s suckle, rubber yarn and so on. While industries with raw material of crumb rubber (SIR), but small in number, they are conveyor belt, dock fender, rubber dam and so on. Indonesia is the second biggest rubber producer after Thailand. Over the last five years, Indonesia rubber export has shown an increase. In 2005, Indonesia perched on fifth rank of its rubber export with the total shares of 4.18 %. It noted a 7.39% increase in rubber exports to 2.02 million ton or US$2.58 billion compared to that of in 2004. Based on its quality, Indonesia rubber export comprises 4,000 ton latex or 0.20% of the total exports, RSS 334,13,000 ton (16,51%), SIR 16,747,200 ton (82,75%) and other types 1,092,000 ton (0,54%). The rubber export destinations are the USA, Japan, China, Singapore, South Korea, Canada, Germany, Brazil, France and South Africa. Indonesia has superiority to increase its rubber product in the future that is the vast tropical land availability fits with rubber plants. The world’s rubber consumption continues to note an

increase from 6,462,035 ton in 2002 to 6,917,111 ton in 2003. The data indicates that there is an increase in demand on the natural rubber and it remains potential for Indonesia rubber product marketing.

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