DEVELOPMENT OF FLORICULTURE INDUSTRY IN INDONESIA 25th-29th September2017 Taichung, ChineseTaipei 69 th AIPH ANNUAL CONGRESS Budi Marwoto INDONESIAN ORNAMENTAL PLANTS RESEARCH INSTITUTE, Jln Raya Pacet Ciherang, PO BOX 8 Sdl Cianjur 43253, Telp, (0263) 517056, Fax. 514138, e-mail marwoto_17mar@yahoo.com, balithias@yahoo.co.id
OUTLINE 1. Geography of Indonesia 2. Indonesia s Economic Indicators 3. Biodiversity of Indonesia 4. History of the Development of the National Floriculture Industry 5. Pattern of Business Development of National Floriculture Industry 6. Center of Ornamental Plant Production In Indonesia, 7. The Performance of the National Floriculture Industry 8. Problems In the National Floriculture Development 9. Government Support to the Development of Floriculture Industry 10. Strategy of the National Floriculture Development 11. Government Program on The Development of Floriculture Industry 12. Role of Innovation in Increasing Competitiveness of Indonesia s Floriculture Industry
Map of the World
INDONESIA S ECONOMIC INDICATORS
CONTRIBUTION OF VARIOUS SECTORS TO THE NATIONAL GDP GDP per Sector Global GDP contribution by sector (World GDP US $ 72 Trillion) Contribution of Indonesia's GDP by sector (GDP of Indonesia US $ 1 Trillion) services Agriculture industry Lain-Lain Agriculture Industry (Oil and Gas) 63.4% 5.9% The Service Sector is mainly driven by the impact of value added developments in the industrial sector 30.7% Finance Transportati on Trade & Hotel 7.01% 14.33% 7.52% 11.79% 14.43% 30.75% 14.17% 44,92 % Industry (Non Oil and Gas World GDP is filled by Service Sector as the largest contributor (63%) Indonesia's GDP is filled by the largest contributor of the industrial sector (45%), Agriculture sectors contributed 14.43% Indonesia's GDP contributes 1.4% to global GDP 7
Indonesia's Portion of Global Trade Rank Exporters USD Billion Trends (%) 2011-2015 2011 2015 1 China 1.898,4 2,281.9 5.15 13.97 2 USA 1.481.7 1.503.9 0.77 9.21 3 Germany 1.482.2 1.331.2 (1.53) 8.15 4 japan 823.2 624.0 (6.73) 3.83 5 Netherlands 667.5 567.7 (2.94) 3.48 6 Korea, Republic of 596.8 526, 9 (0.59) 3.23 7. France 596.8 506.1 (3.05) 3.10 10 Italy 523.3 458.8 (2.07) 2.81 27 Indonesia 203.5 162.8 (5.10) 1.00 44 Philippines 48.0 58.6 5.89 0.36 77 Myanmar 8.5 12.9 20.70 0.008 Shared (%) 2015
BIODIVERSITY IN INDONESIA Indonesia is known as mega-diversity country, possessing various species of animal and plant. Mammalian 300 species Aves 7500 species Reptile 2000 species Amphibian 1000 species Fishes 8500 species Insect 250000 species Bryophyte 7500 species Algae 7800 species Mushroom 72.000 species Ornamental Plants 29.000 species
HISTORY OF DEVELOPMENT OF THE NATIONAL FLORICULTURE INDUSTRY The national floriculture cultivation was initiated since the Dutch colonial era Since ancient times peoples have used flowers for various purposes, including for weddings, birthday parties, ceremonies and cultural ritual The development of an industrial floriculture business occurred in the 1980s, when domestic investors opened up business fields using innovations imported from the Netherlands in West Java In line with the development of industry basis on the ornamental plant cultivation, small farmers in various places developed cultivation ornamental plants traditionally. In the present time establishing partnerships between large companies and small farmers have become a necessity to develop an economical scale business.
PATTERN OF BUSINESS DEVELOPMENT OF INDONESIA S FLORICULTURE INDUSTRY The national floriculture industry consists of three groups, i.e. 1. Industrial patterns, managed by large companies which develop floriculture businesses by implementing sophisticated innovations within physical controlled greenhouses (10%), 2. Traditional pattern, managed by small farmers which apply traditional technology (60%). 3. Intermediate farming pattern which is operated by semi modern technology (30%)
FASE VEGETATIF MULAI MEMASUKI FASE GENERATIF
TRADITIONAL FLOWER CULTIVATION
RAWABELONG FLOWER MARKET
Centre of Ornamental Plant Production Areas in Indonesia
Tomohon, North Sulawesi Bandungan, Central Java Solok, West Sumatera Sukabumi, West Java Tabanan, Bali Pasuruan, East Java
FLOWER CITY FLOWER FESTIVAL GRAND DESIGN FLOWER CITY LOCAL REGULATION OF INVESTMENT
PRODUCTION OF INDONESIA S CUT FLOWER IN 2012-2016
No Harvested Area of Indonesia s Ornamental Plants 2012-2016 Type of Ornamental Plants Harvested areas (m 2 ) 2012 2013 2014 2015 2016 1 Orchid 1.641.352 1.983.078 1.473.760 1.134.221 1.387.241 2 Anthurium 472.669 408.988 203.829 173.662 131.628 3 Carnation 300.467 146.546 117.453 95.945 73.263 4 Gerbera 421.457 372.909 352.756 198.846 183.677 5 Gladiolus 230.265 209.871 161.977 157.239 87.066 6 Heliconia 350.007 272.336 219.220 225.664 236.346 7 Chrysanthemum 9.852.612 9.080.709 9.647.827 10.871.199 10.914.154 8 Rose 2.734.521 3.264.090 3.414.005 3.543.676 3.457.518 9 Tuberous 3.108.021 3.639.623 2.495.256 2.547.140 3.400.042 10 Dracaena 130.268 125.849 143.582 129.278 95.398 11 Jasmine 8.278.415 9.759.117 15.693.611 16.180.121 15.196.235 12 Palm (Tree) 755.422 824.212 922.985 904.458 655.857
No A GROWTH OF THE EXPORT MARKET OF INDONESIA S FLORICULTURE IN 2012 - PEB 2017 Commodi ties Ornamental Plants VOLUME (Kg) 2012 2013 2014 2015 2016 2017 1 Orchid 69.353 58.656 52.651 35.944 44.125 5.309 2 Rose 61.631 41.816 37.985 48.010 56.558 11.129 3 Chrysanthe mum 79.102 57.049 56.227 59.625 60.649 8.360 4 Lilium 249 67 1.405 2.627 708 - B Other Ornamental Plants Total Export Volume of Floriculture crops 9.057.833 3.943.627 3.546.749 7.499.088 6.946.783 1.368.112 9.268.168 4.101.415 3.695.017 7.645.294 7.108.803 1.368.112
NATIONAL FLORICULTURE TRADE BALANCE YEAR 2012-2016 Export value (USD) Import value (USD) 2012 2013 2014 2015 2016 25,934,378 16,304,600 16,589,138 24,904,768 18,012,529 12,531,581 7,947 7,000,081 13,894,406 12,742,389
Destination Country of Indonesia s Floriculture Export No. Country Export Value (USD Million) 2016 Jan-May 2016 Jan-May 2017 1 Japan 4.37 1.45 1.68 2 Thailand 1.41 1.17 0.95 3 Netherlands 2.30 0.86 1.,17 3 Singapore 2.22 0.68 0.52 4 Malaysia 1.92 0.68 0.39 5 South Korea 1.53 0.55 1.11 6 Vietnam 1.26 0.44 0.19 7 China 0.62 0.33 0.30 8 USA 0.53 0.29 0.29 9 Australia 0.49 0.20 0.25 Japan became the main destination of Indonesian floriculture exports with the export share of 2016 reaching 23%. Indonesia's floriculture export performance in 2017 (Jan-May) shows that South Korea experienced significant growth of 101.3%, followed by the Netherlands and Australia which grew 36.7% and 24.3%, respectively.
1. The Netherlands, Colombia, Ecuador and Germany became the world's leading supplier of WORLD Floriculture products 2. Indonesia's contribution as a Floriculture product supplier reaches 0.1%
Problems in Floriculture Development 1. Increasingly limited land resources due to competition of utilization 2. Low competitiveness of floricultural products which are mostly caused by various factor as follows: (a) The application of traditional floricultural technologies; (b) Limited facilities and infrastructure; (c) Lack of skilled human resources; and (d) The high cost of accessing supporting facilities/infrastructure. 3. Low availability of high quality plant. 4. Floriculture data and information is still very limited so it needs to be refined. 5. Extreme climate change that causes decreasing flower productivity, production and quality 6. The Indonesian floricultural cultivation pattern is generally a small-scale, scattered, individually-managed smallholder farm 7. Low priority in agricultural sector development policy
Strategy of Floriculture Development Provision of infrastructure, Equipment, Land and Water : Provision of adequate infrastructure for production, distribution and markets Provision of land for developing floriculture agribusiness areas (production centers and markets) Provision of water resources and installation for irrigation Development of production subsystem Increase crop production, productivity, yield quality and competitiveness Development of Marketing Subsystem Information System Development / Production And Market Map (Database) Development of Distribution and Market Networks Facilitation of Partnership in Export Market Access Promotion Facility Conducive Regulation
GOVERNMENT PROGRAM ON THE DEVELOPMENT FLORICULTURE INDUSTRY Developing floricultural central area production throughout the country Ensuring availability of floriculture products for domestic and export market Encouraging the development of Green City and Flora village Establishing of cooperation among floriculture business actors through mutual partnership pattern Availability of access to information, capital and markets Availability of a conducive business climate for the growth of the floriculture industry Support a conducive regulatory system through business licensing, investment and taxes, in order to grow the national floriculture industry. Facilitation of promotion starts at regional, national and international levels.
ROLE OF INNOVATION TO THE DEVELOPMENT OF THE NATIONAL FLORICULTURE INDUSTRY Innovation increases the competitiveness of the floriculture industry Innovation improves production efficiency, productivity, quality of floriculture products, and sustainability of product supply Innovation improves efficiency of distribution and marketing system, Innovation improves value added and product development, Innovation is the main component of industrial modernization floriculture
NEW VARIETIES OF CHRYSANTHEMUM Varieties of ornamental plant : chrysanthemum, roses, anthurium, gladiolus, carnation, dendrobium orchids, spathoglottis orchids, phalaenopsis orchids, lily, tuberous and tropical ornamental plants with attractive colours, novel, long life vase, important pest resistance and adaptive in tropical conditions Asmarandhana Puspita Nusantara Sakuntala Cut Nyak Dien Dewi Ratih Tirta Ayuni Swarna Kencana Puspita Asri Pasopati Kusumapatria Kusumasakti Kusumaswasti Mustika Kaniya Nyi Ageng Serang Padma Buana Awanis Agrihorti Ratnahapsari Selena Merahayani Selena Salzieta Violentana Jayani Hartuti Potted Krisan Arosuka Pelangi Solinda Pelangi Kulo Ririh Marimar Yulimar Anindita Chandrasmurti
Gladiolus NEW VARIETIES OF GLADIOLUS AND CARNATION Devi Firda Nurfitri Nurlaila Alika Fitri Nafa Annisa Rizka Fatimah Gentina Hunaena Clara Nabila Carnation Brenda Laura Sitari Alifia Puspita Arum
Technology of In Vitro Mass Propagation