Natural treasures from the Ring of Fire

[Cyril Roger Brossard]

Article by Niken Prathivi, The Jakarta Post, Jakarta November 18 2012.

As an archipelago located in the Ring of Fire, Indonesia possesses a wide range of materials used to make jewelry, such as ancient gemstones, precious metals and fine, rare beads like pearls, which are viewed as hidden treasures of the world.

With precious stones such as rubies, sapphires and the like, a seemingly endless supply of precious metals like gold and silver, as well as millions of saltwater-cultured pearls, Indonesia is a jewelry haven.

?I like the fact that jewelry makers are now being more creative in exploring Indonesia?s indigenous materials, be they traditional or contemporary,? Indonesian fashion designer and ethnic jewelry collector, Ghea Panggabean, told The Jakarta Post.

?They?ve been showing great progress and I?m really proud of them,? said Ghea, who often collaborates with local jewelers to make accessories for her label.

From this year?s Mutumanikam Nusantara Indonesia jewelry exhibition, Ghea said she loves the creations of gold jewelry from Jambi, interesting and functional pearl jewelry from Lombok, jewel bags, carved fish boned jewelry from Bali and replicas of antiques.

Ghea said the replica antique jewelry would be a big hit in 2013. ?The replica antique jewelry uses gold-plated metal, which is then meticulously carved to give it an ethnic look. It is also adorned with exotic stones.?

Another buyer, Eni, said that her purchase during the exhibition was actually unplanned.

?Any woman would understand; purchasing things like jewelry is mostly spontaneous. I didn?t plan to shop here, but, hey, our local jewelry is so gorgeous I just had to buy something,? she told the Post after completing a purchase at one of the booths.

Holding her handbag along with several small paper bags from the spree, Eni admitted that she was accompanying the wife of a deputy minister to the annual exhibition. However, she ended up with some new jewelry, including a pair of pearl earrings.

Mutumanikan Nusantara Indonesia?s director, Soeharto, said that around 200 companies took part in the seventh exhibition.

?We usually have between 200 and 250 participants. But this year, we have 200 from all across the country as well as from three overseas, namely Hong Kong, India and Sri Lanka,? Soeharto said.


The exhibition displayed various pieces of jewelry, from fine silver-made brooches and rings ? starting from Rp 200,000 (US$21) a piece, to a collection item of a whole-set pearl necklace, which was priced at Rp 2 billion.

Tourism and Creative Economy Minister Mari Elka Pangestu said during the opening of the exhibition that Indonesian jewelry products had contributed as much as Rp 33 trillion to the country?s revenues, with around Rp 2 trillion in exports.

Chandra, a silver jewelry maker from Kotagede in Yogyakarta, said that most of his buyers purchased small silver brooches.

?As compared to some big jewelry companies, we offer lower priced products. Fortunately, there are always visitors coming to shop. Usually, they want to buy a simple brooch for Rp 200,000, or a set of earrings and a pendant for about Rp 560,000,? said Chandra.

Kotagede is famous for its fine silvery pieces, which are 92.5 percent pure in silver.

Fine gemstone jeweler Ali said that despite the luscious pearls or prestigious diamonds, gemstones had particularly avid fans.

?Most of our stones are rubies and sapphires. Locally, they come from Martapura, Pacitan, Sukabumi and Wonosobo. Internationally, they are imported from Africa, Iran, Russia and Sri Lanka,? he said.

Ali shared that the world?s great rubies came from Sri Lanka. ?But the mining in Sri Lanka is shrinking, so the price of each stone is getting higher. I no longer shop in Sri Lanka. However, Africa has just opened new ruby mines, so the price is still affordable.?

The Myanmar Embassy in Indonesia also took part in the event, showcasing numerous not-for-sale items including various precious stones and Myanmar?s own gold jewelry.

?It?s the first time we have participated in such an event. Due to the limited time for our preparation, we could not bring our own jewelers from Myanmar, so we are providing these collection items.

?Some of the visitors are interested to what we have, but we?re really sorry we cannot sell these,? said Sabai Win, the wife of the Myanmar ambassador to Indonesia.

Win said the exhibition would potentially pave the way for collaboration between Indonesia and Myanmar in terms of jewelry production.

Nothing follows.

 

[Caitlin]

Most of us could learn more about Indonesia and this aspect of its history. Nice to have the info right here!

I wonder if we could build up some photos of traditional and modern Indonesian pearls and jewelry? And it seems, specifically Balinese, for that matter. We are a bit started on the Persian Gulf history, too and on documenting India's ancient preoccupation with pearls.

This bringing of local articles to an international forum could be important in understanding the world in terms of pearl maps and pearl cultures. I personally never knew much about Bali (except for the silver and gold work) or thought about Indonesia's pearl cultures other than Bali.

 

[Sutrisno]

Most of the Old surviving farms and farmers in Indonesia originated in East Indonesia, Maluku province. With newer, 'second' generation farms in Central Indonesia, like Nusa Tenggara, Sulawesi and even a few in Sumatra and Irian Jaya. 'New' generation farmers tend to be 'closer' and are situated in near big hub cities/airports like Bali, Lombok ( in nusa tenggara barat) and Sorong (irian jaya). There are others of course but this is just the top of my head.

Among Indonesians, certain regions are synonymous with pearls. Dobo, and Ambon, or Maluku are usually names used to market pearls to locals. Lombok became famous only recently with the local regency creating a pearl hub/market, Pasar Mutiara Lombok and festivals with plenty of advertising around it. Recently in the past 2 years Old pearl farmers have gotten together to create the Indonesian Pearl Festival, this year being its 2nd year to help promote pearls and keep farmers alive.

Overall it is a steep uphill fight for the continuity of Indonesian Pearl Farms and I would definitely like to hear more from farmers directly, or those who know them.

 

[Caitlin]

Please be sure to post any information about the festival- such as news articles and photos. Let's publicize it!

 

[Cyril Roger Brossard]

I believe the Lombok Sumbawa Pearl Festival is over now (July 2012?).
This said , the Ministry of Maritime Affairs and Fisheries (MMAF)planned to hold another Indonesia Pearls Festival by facilitating 43 Indonesian pearl boot businesses including inviting nine pearl-producing provinces.
Indonesia Pearls Festival (IPF) 2012 was to be held on 31 October to 4 November 2012 located in Jepara Executive Luonge Balai Kartini Jakarta.
Indonesia is the south sea pearls producer which produce from Pinctada Maxima Shells, as well as the source of natural products from aquaculture. Pinctada Maxima Shells production development place are scattered in some areas such as Bali, West Nusa Tenggara, East Nusa Tenggara, North Sulawesi, Southeast Sulawesi, Central Sulawesi, Maluku and North Maluku and Papua.
Indonesia pearls have two types of natural pearls and cultured pearls. Natural pearls are difficult to predict and is rarely to find, while cultured pearls are traded as akoya pearls.

This is what I retrieved (related).

Indonesia To Protect Pearl Industry From Influx Of Imported Pearls From China

Jakarta (Antara News) - The number of Indonesian pearl companies has dropped from 86 to 27, a decrease of about 64 percent, due to an influx of freshwater pearls from China into Indonesia.

"The local companies were forced to close down as they were not able to compete with the low prices of imported pearls," said Saut Hutagalung, the maritime affairs and fisheries ministry`s director general for processing and marketing of fishery products, on the sidelines of a pearl festival on November 1.
Besides, due to the low quality of imported pearls in Indonesia`s markets, the price of Indonesian pearls in the world market is much lower than pearls from other pearl producing countries such as Australia.
In order to protect local pearl producers, Indonesia`s maritime affairs and fisheries ministry will issue a ministerial regulation on the quality control of imported pearls because many of them are below the Indonesian national standard (SNI).

"The ministry will speed up the drafting of a decree on the quality control of pearls imported by Indonesia," Maritime Affairs and Fisheries Minister Sharif C Sutardjo said when opening the "Indonesian Pearls Festival II - 2012" here on November 1.

The ministerial decree is aimed at protecting Indonesia`s pearl producers because cheaper, sub-standard pearls are negatively affecting the sales and pricing of local pearls.
The ministry`s director of product development, Maman Hermawan, said the ministerial regulation would ensure that the pearls coming into Indonesia will be meet SNI requirements.

"Hopefully, by the end of 2012, this regulation will in effect," he added.

Fresh-water pearl from China has reportedly entered the Indonesian market, particularly in West Nusa Tenggara and Bali.
Indonesia is the world`s eighth-largest south sea pearl (SSP) producer. Located between the northern coast of Australia and South China coast, the South Sea waters are home to a large population of oysters known as Pinctada maxima.

"These oysters grow up to a diameter of 12 inches, and can be nucleated with beads much larger than other marine shells, such as the Akoya," Maman noted.

SSP is produced from Pinctada maxima pearl oyster naturally as well as by culture. The country has several centres for the culture of Pinctada maxima: Tenggara, North Sulawesi, Southeast Sulawesi, Central Sulawesi, Maluku, North Maluku and Papua.
Indonesia` SSP has a unique colour and sparkle, due to which it is popular in the international market.
SSP is shinier, bigger and much more expensive than other pearls such as Akoya, Tahiti and fresh- water ones.
It is one of the largest varieties of pearls that can be commercially cultured. The average sizes of SSP are 12 mm and 13 mm, which are also the most popular.

The country has 27 large- and-middle-scale SSP-producing companies, which employ more than 8,000 workers, mostly in eastern Indonesian regions.
The government has also established a broodstock centre in Karangasem, Bali, in order to guarantee the quality of Indonesian pearls.
In 2011, Indonesia`s SSP production reached 6,300 kg, accounting for 53 percent of the world`s total production of 12,000 kg of SSP.

Pearl prices increase annually because the demand for pearls also rises every year. According to UN Comtrade data (2012), Indonesia`s pearl trade value reached US$31.8 million in 2011, while the global pearl trade value was recorded at US$1.5 billion.

There are 100 pearl traders in the country and some 5,000 small-scale pearl cultivators.
In 2010, the country produced 5.7 tonnes of pearls, about 95 percent of which was exported to Hong Kong, India, the Philippines and Japan, worth a total of approximately $30 million.
Total transactions at Indonesia Pearl Festival 2012, held from November 1-5, are expected to reach at least Rp10 billion.

"The committee has targeted Rp10 billion in transactions. However, it could reach much more than that, maybe around Rp30 billion," Saut said.

The festival is organised by the ministry in cooperation with the Indonesian Pearl Cultivation Association (Asbumi) and the ministry`s association of civil servants` wives.

"The pearl festival last year had a Maluku theme. This year, it is East Nusa Tenggara,� Saut noted.

Asbumi chairman Anthony Tanios stated that a total of 34 pearl cultivators (who are Asbumi members) and nine provinces are taking part in this year`s festival. The nine pearl producing provinces are Bali, West Nusa Tenggara, East Nusa Tenggara, North Sulawesi, Southeast Sulawesi, Central Sulawesi, Maluku, North Maluku, and West Papua. Some 10,000 visitors are expected to attend the festival.
The South Sea Pearl auction, organized during the Sumbawa Pearl Festival in Mataram, West Nusa Tenggara (NTB), from June 29 through July 1, saw transactions worth a total of US$ 96,000. Buyers from 36 countries took part in the auction.

"The price of Lombok pearl rose from US$5 last year to US$16.3 per gram this year," said Bambang Setiawan, the deputy chairman of the Indonesian Pearl Cultivation Association`s Organization Unit.

"Lombok produces natural and best-quality pearls in the world, which have become very popular among tourists. West Nusa Tenggara Province produces around 600 kg of pearl annually," he noted.

NTB pearls, which come in 27 different colours, are exported to jewellery makers overseas, including in New York, Tokyo, Geneva and Zurich (Switzerland), and Milan (Italy).

 

[cookierookie]

"Indonesia is the world`s eighth-largest south sea pearl (SSP) producer."
"In 2011, Indonesia`s SSP production reached 6,300 kg, accounting for 53 percent of the world`s total production of 12,000 kg of SSP."

Those two sentences contradict each other? How does that work?

 

[Cyril Roger Brossard]

"Indonesia is the world`s eighth-largest south sea pearl (SSP) producer."
"In 2011, Indonesia`s SSP production reached 6,300 kg, accounting for 53 percent of the world`s total production of 12,000 kg of SSP."

Those two sentences contradict each other? How does that work?

Hi Valerene,
My two cents as follows (more knowledgeable in the forum may give you different reply).
Indonesia may produce around 1400 kan, Australia around 1300 kan and the Philippines around 400 kan.
So they should be the biggest producer in term of volume.
As for the 8th position, I am not quite sure what they mean by that, maybe they refer to the position of their biggest single producer?
Or the writer misunderstood the statement...

 

[cookierookie]

No worries Cyril! Someone in Indon might be able to clear this up.

 

[Sutrisno]

I think that line is more towards the value of the pearls. I don't have the official data but it is believed as a whole, indonesian's pearls are priced much cheaper to australian's, phillipines and such. Though the eight ranking doesn't state any numbers to compare. Averaged price of pearls from indonesian farmers are around USD5 per gram as mentioned but this number also includes all the pearls produced including the really bad ones. With the festivals aimed at introducing farmers to consumers in the hopes of increasing overall price.

As mentioned before many farmers are struggling to survive and the Indonesian Pearl Festival was done by ASBUMI and KKP with the goal of saving indonesian pearl farms. And word from my farmer friends, it was a success. infact much more than the jewelry show that followed after if they are to be believed. i still owe you them IPF photoes.

 

[cookierookie]

Ahhh now it makes more sense! thanks for clearing that up, Sutrisno.

Are prices still at USD 5 per gram? I thought it would have increased by now. I can imagine Indonesian pearls commanding a lower price than Australian pearls simply because labour/operational costs would be much higher in Australia!

 

[Sutrisno]

Well valerene, it is a total average meaning you add the crap de la crap ( am i allowed to write that?) that are still sellable by farmers. Afterall a really bad quality pearl will still have the same manufacturing cost as a real stunner, thus forcing many indonesian farmers to try to sell them off to at least partially recoup their operating cost. Not all farmers are created equal, so while bigger farmers may be able to survive without selling off their very low grade products, many local indonesian farmers just simply can't. So some pearls are definitely cheaper than USD5/gram and others more expensive.

Remember there's also the Rp 2billion strand mentioned in the article. Hahaha, no, lower prices are not a result of lower operating cost but more towards the simple fact that wild pinctada maxima stocks have not recovered well at all throughout indonesia. This forced many farmers to try out breeding their own oyster stocks without proper understanding and technical know how which results in low quality oysters thus low quality pearls. As mentioned indonesian pearl farmers are climbing a very steep hill.

 

[cookierookie]

Very interesting Sutrisno. So most farmers who have their own hatchery now don't actually know what they are doing?

 

[Sutrisno]

Hello Valerene,

Yes, indeed, suprising as it may sound many Indonesian farmers do not know what they are doing when it comes to pinctada maxima breeding. Just 2 days ago I spoke to one who was telling me this exact same problem. He was quite frustrated at his farm's failures at hatchery until one day he rechecked their SoP with other farmer's that wanted to share and he was quite suprised at the differences in methodology.

Cut the story short he called up his 2 sons in the farms, told them to try the 'new' method, and last month their hatchery was a success.

Many farmers face this problem and worst part is, the marine research institutes tend to teach farmers to replicate, not reason's, whys and whats. So a bad copy will just get worse overtime.

Word is, Indonesia's SSP production for this year and 2 years to come will be much lower than previous years.