Trade Minister Lutfi Ready To Chase Rp16 Trillion Of Swallow's Nest Exports To China, Jokowi Asks Trade-Agriculture Ministry To Have One Voice

Minister of Trade, M. Lutfi. (Photo: Doc. Of the Ministry of Trade)

JAKARTA - Trade Minister Muhammad Lutfi said China is committed to buying swallow bird nests from Indonesia worth Rp16 trillion. Therefore, President Joko Widodo (Jokowi) asked the Ministry of Trade and the Ministry of Agriculture to equalize the rules related to the export of Indonesia's wealth.

"As we know recently we made a visit to China and China has committed to buy our swallow's nest for more than Rp16 trillion and today that figure is only half, and we will pursue this target in 2021," he said after a Limited Meeting at the Presidential Palace, Jakarta, Tuesday, May 4.

Furthermore, Lutfi said that currently, the government is aggressively encouraging swallow nest farmers to produce it.

"This is what we discussed earlier with Mr. President Jokowi. We are asked by the Minister of Agriculture and the Minister of Industry to encourage swallow nest farmers to fulfill it," he said.

Lutfi said Indonesia has a great opportunity from swallow's nest which has a large enough value. Moreover, currently, Indonesia is the main producer of swallow's nest.

"Indonesia is the main producer of bird's nest for the world, even if I'm not mistaken, almost 80 percent of the world's capacity is supplied by Indonesia," he said.

In fact, in 2020, the export value of swallow's nest by Indonesia will reach 540 million dollars for 1,316 tonnes exported.

Price disparities occur

Lutfi said there needs to be an improvement in exports because there is a high price difference for the export of swallow's nest in a number of countries. For example, the selling price of a bird's nest in Hong Kong is 88 per kilogram, or the equivalent of Rp1.26 million per kilogram (Kg), assuming an exchange rate of IDR 14,430 per dollar.

Meanwhile, said Lutfi, the selling price of swallow's nest in China is more than US$ 1,500 per kilogram or more than Rp21.64 million per kg.

"That's why we will carry out shifting, the similarity of rules between the Ministry of Agriculture and the Ministry of Trade but the idea is one: We will try to promote exports from Indonesia's wealth to get the best results for our farmers, for the domestic industry," he explained.

Not only that said Lutfi, but the Ministry of Trade will also streamline or simplify the export licensing process for swallow's nest.

"And ensure we will get the best price from swallow's nest," he said.