Market Overview

The collection, production and trade of gaharu have been becoming significant since last two decades.  The production of gaharu from cultured plantation increases since they have been expansively conducted in most provinces in Indonesia.  In the past, gaharu was primarily traded in some cities, such as Pekanbaru (Sumatra), Surabaya (Java), Pontianak and Banjarmasin (Kalimantan) and some other locations.  Some key importing countries of Indonesian gaharu are Singapore, Suadi Arabia, Taiwan, Japan, United Arab Emirates and Malaysia.

However, despite the large potential production, the information and access for trade and market of Indonesian gaharu seem still to be limited for ordinary growers and small and local traders.  Currently, the market share of Indonesian gaharu is dominated by certain traders and exporters.  Local growers mostly receive only very limited information on how and where the the product could be traded.  Current trade is primarily through Indonesian CITES registered traders and exporters or through Indonesian gaharu association (Indonesian Association of Agarwood Exporters-ASGARIN).  Recently, some agarwood growers in each region have formed their own group as farmers group.  These farmers groups will play an important role in the production, whereas government and association are needed to facilitate transparant market and other necessary information on market access.