Supply & Demand

Supply

Current producers of gaharu are species from Aquilaria, Gyrinops, Gonystylus, Aetoxylon, Eukbia, Wikstroemia and Paleria. However, Aquilaria and Gyrinops are still the prominent producers for gaharu from Indonesia. In the past, the gaharu from Indonesia was primarily produced from the wild, but now, gaharu production from plantation (cultured plantation) is growing as the number of gaharu growers is increasing from time to time and the area for planting gaharu is expanding to most of provinces in Indonesia. Cultured plantation for gaharu are mostly Aquilaria malaccensis, A hirta and Gyrinops versteeqii.

The source and supply of gaharu from Indonesia are now widely distributed as gaharu plantation expands, such as from Sumatra, Bangka Belitung, Kalimantan, Sulawesi and Papua. However, it is still impossible to accurately estimate the production of gaharu, especially from the wild. Referring to the existing laws and regulation, there will be only gaharu from community forest as legal. Gaharu collected from the wild such as state forests may not be clear its legality. Non timber forest products from state forest, unless otherwise, having harvesting licence (permit) is not allowed to be harvested. It means gaharu shoudl only be from cultured plantation or community forests. Gaharu from state forests should not be collected and traded.

The production and export of gaharu are regulated based on quota system which is started from each provincial production and supply. The quota for each province is determined annually based on several criteria, such as the previous production and current estimate based on field data collection, either by local traders (middleman) or other necessary information collected by regional office of BKSDA as representative of CITES Management Authority.

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Primary Buyers

Currently, the primary buyers/importers of Indonesian agarwood are the countries of the middle east, Japan, Korea and China. The export is either directly or through Singapore or Malaysia.

Demands of Agarwood

Most of Asian countries are producer or suplier of gaharu.  However, there is no exact figure on potential production of gaharu in each country, either from the wild or cultured plantation.  Each country, except  Singapore, has promoted their gaharu production from plantation.  The existing technologis have enabled the production of gaharu from plantation using various innoculation techniques.  China, Vietnam, Thailand and Malaysia have been leading in there gaharu innoculation and plantation.

In Indonesia the gaharu is produced primarily from Sumatera and Kalimantan.  Other islands contribute in small quantity.  The primary buyers/importers of Indonesian gaharu are the countries of the Middle East, Japan, Korea and China.  The export is either directly or through Singapore or Malaysia.  Local traders within Indonesia are mostly under the Indonesia Association of Gaharu (ASGARIN).  The trade, expecially, International is mostly through ASGARIN or under the supervision of ASGARIN.