TEMPO.CO, Jakarta-Saudi investors signed a contract of Indonesian gaharu wood (agarwood) imports worth of Rp100 billion (US$7.5 million). Local company PT Idaman Polanusa has been entrusted to supply 100 tons of agarwood (similar to sandalwood) to Saudi Arabia for a year.
The agarwood export volume by June 2016 stood at more than 10 tons with a total value of Rp28 billion (US$2.1 million).
“This reflects the huge potential of gaharu exports to Saudi Arabia,” Gunawan, head of the Indonesia Trade Promotion Center (ITCP) in Jeddah, Saudi Arabia, said on Wednesday, July 13, 2016.
Agarwood is a non-wood forest product used as a raw material in fragrance and cosmetics, medicines, or incense for religious rituals. The wood is one of the most highly-valued commodities.
Gunawan added that the ITPC in Jeddah would participate in the agri-food and agriculture expo to be held in October this year, in a bid to facilitate business owners operating in the sector.
Dicky Yunus, acting consul general at the Indonesian Embassy to Saudi Arabia, revealed that his institution had conducted economic diplomacy in order to boost exports of non-oil and gas products and services to Saudi Arabia, particularly those related to trade, tourism, and investment sectors.