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Jakarta Post

Pearl house expected to boost sales

Pearl sellers and producers in West Nusa Tenggara (NTB) have high hopes that the newly-inaugurated Indonesia Pearl House (RMI) will help promote their products and boost sales

Panca Nugraha (The Jakarta Post)
Central Lombok
Sat, February 22, 2014

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Pearl house expected to boost sales

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earl sellers and producers in West Nusa Tenggara (NTB) have high hopes that the newly-inaugurated Indonesia Pearl House (RMI) will help promote their products and boost sales.

Maritime Affairs and Fisheries Minister Sharif Cicip Sutardjo recently inaugurated the RMI in Pujut district, Central Lombok. RMI is the first of its kind in Indonesia.

It will serve as a house of reference for South Sea pearls and will assist in the development of the pearl industry in the future.

Cicip said that RMI would function as a regional pearl bourse as well as a trading, auction and pearl grading center to ensure products for export meet the Indonesian National Standard (SNI).

The two-story RMI, located along the highway to Lombok International Airport, cost the Maritime Affairs and Fisheries Ministry more than Rp 4.5 billion (US$383,000) to build. It stands on a 4-hectare plot provided by the NTB provincial administration and the Central Lombok regency administration.

'€œWe hope that the RMI can help promote our products, but it has to be managed well,'€ Nurmah, 50, the owner of the Rose Mutiara pearl shop in Mataram.

Local South Sea pearl sellers and producers, Nurmah went on, have been hit by the surge of imported products from China, which were often wrongly labeled and marketed as Lombok or Sumbawa pearls.

'€œMany people sell Chinese fresh water pearls, the quality of which are way below our local products. But since the pearls are set into attractive designs and include '€˜Lombok'€™ on the packaging, they sell like hot cakes,'€ she added.

Supervisor of Septia Pearls Lombok, Nila, 32, spoke along the same vein.

She hoped RMI could cater to the need of buyers and pearl producers and protect local pearl sellers from the threat of imported products.

Nila said that original South Sea pearls cost Rp 200,000 to Rp 2 million per gram, depending on the quality. A locket adorned with two pearls may cost Rp 18 million.

'€œTrue pearl fans won'€™t be surprised by the high price,'€ Nila said.

Central Lombok was picked as the location for RMI because it is the nation'€™s biggest producer of South Sea pearls.

According to Cicip, the global pearl market is currently dominated by four pearl types. South Sea pearls are produced by Indonesia, Australia, the Philippines and Myanmar, at an annual production volume of between 10 and 12 tons.

The second type of pearl is the fresh water pearl produced by China at 1,500 tons annually, followed by Akoya pearls produced in China and Japan (15-20 tons) and black pearls produced in Tahiti (8-10 tons).

According to Cicip, Indonesia has been the biggest producer of South Sea pearls since 2005 and it exported 43 percent of them to countries such as Japan, Australia, South Korea, Thailand, Switzerland, India, New Zealand and France.

However, in terms of trade value, Indonesia is still ninth in the world with an export value of only $29 million, or 2.07 percent of the total global pearl export value, which is more than $1.41 billion annually. Indonesia'€™s pearl export value is below that of Hong Kong, China, Japan, Tahiti, Australia, the United States, Switzerland and Great Britain.

'€œDespite that, we are upbeat the export value of Indonesian pearls would further rise in the future given that South Sea pearls produced in Indonesia are unique in color and everlasting sparkle, sought after characteristics on the international market,'€ said Cicip.

Based on ministry data, NTB, East Nusa Tenggara, Lampung, North Sulawesi, Southeast Sulawesi, Central Sulawesi, Gorontalo, Maluku, North Maluku and West Papua all produce South Sea pearls.

As of 2013, at least 23 companies had invested in pearl cultivation: 17 domestic investors and six foreign investors.

As part of efforts to attract investors to the maritime and fisheries sector, including pearl cultivation, Cicip said his ministry would remap maritime zones in reference to the Marine, Coast and Small
Islands Law.

Meanwhile, NTB Deputy Governor Muhammad Amin said RMI would not only maintain the quality and price of pearls but also bring added value to tourism in NTB.

'€œRMI and trade activities, such as pearl auctions, are expected to be able to strengthen the image of NTB as the biggest pearl producer nationwide. Besides that, RMI could also help boost tourist arrivals to Lombok and NTB in general,'€ said Amin.

Central Lombok Regent Suhaili expressed hope that RMI would have a positive impact on the local economy.

'€œRMI is close to Lombok International Airport, Awang Port and Mandalika Resort Special Economic Zone. This would certainly support efforts to develop tourism in Central Lombok in particular and NTB in general,'€ said Suhaili.

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