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s many as 33 out of 36 pearl cultivators and exporters in West Nusa Tenggara (NTB) have practically stopped operating this year due to the plummeting price of pearls on the international market as the result of the global financial meltdown.

Pearl production has dropped drastically from the average of 1.2 tons annually to only 200 kilograms this year.

"Only three companies remain active due to plummeting pearl prices, while the other 33 companies are only operating for the sake of covering operational costs and employees' salaries," said NTB Maritime Affairs and Fishery Office head Ali Sahdan in Mataram on Saturday.

He added the plummeting pearl prices from the start of the global economic crisis had yet to be corrected.

The current price of pearls ranged between Rp 35,000 (US$3.50) and Rp 300,000 per gram, despite the fact that it could reach between Rp 135,000 and Rp 1.5 million per gram in 2007 and 2008, according to its quality.

Consequently, 33 of the 36 companies have had to halt their activities due to the surplus of production and drop in prices.

Some companies had to cut the salaries of their employees, or issue redundancies.

Ali said 70 percent of the 36 pearl cultivation locations in Sekotong, West Lombok and Ekas Bay in East Lombok were forced to close due to falling prices.

This year, Ali added, only three companies remain operating: PT Kioko Sinju in West Lombok, PT Bima Mutiara in Bima and PT Autoray Pearl in East Lombok.

"As of November this year, three of the companies have only produced 209 kilograms of pearls for the Japanese market," he said.

The potential of oyster pearl cultivation in NTB can be found in waters off Lombok and Sumbawa islands.

In mid-May this year, during the launch of the Visit Lombok and Sumbawa 2012, President Susilo Bambang Yudhoyono and First Lady Ani Yudhoyono symbolically placed a pearl germ at the Senggigi Beach in West Lombok as part of an effort to support NTB's bid to become a national pearl production center.

Ali said his office could not do much to improve pearl prices.

"We can only hope the international pearl market improves," he said.

"Pearl cultivation in NTB can run at its maximum anytime, provided the market remains available and prices return to normal."

He added 90 percent of the pearl production in NTB was exported to various countries, such as the United States, Japan, Korea and a number of European countries, while domestic demand only stood at 10 percent.