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14 April 2021 (closed)
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Indonesian clove farmers are optimistic that the nation's clove production in 2016 will be similar to last year's production realization in the range of 100,000 to 110,000 tons, provided that the weather is good and there will be no excessive rainfall. I Ketut Budiman, Secretary General of the Indonesian Clove Farmers Association (APCI), said Indonesia's clove farmers will not raise their production target in order to maintain clove prices at profitable levels. Currently, the clove price at the farmer level is IDR 100,000 (approx. USD $7.19) per kilogram, while farmers' production costs are estimated at IDR 75,000 per kg.
However, Budiman said that the clove price is expected to fall in the July-October period as the harvest will cause an ample supply of cloves.
Most of the nation's clove production - over 90 percent - is consumed by Indonesia's tobacco industry. In 2016 the industry is expected to require between 80,000 and 90,000 tons of clove for the manufacturing of kretek cigarettes. With Indonesia's clove output expected at more than 100,000 tons there should be no need for clove imports in 2016.
In recent years it only happened in 2011 that APCI requested the government to import clove as the nation's harvest was weak and could only supply 30 percent of the tobacco industry's clove demand.
Meanwhile, Indonesia only exports about five percent of its clove production and therefore this business is not a key foreign exchange earner for Southeast Asia's largest economy.
Currently the total size of Indonesia's clove plantations is about 500,000 hectares, mostly located on Java, Bali, Aceh (Sumatra), Sulawesi and the Moluccas.