JAKARTA, Jan 11 Asia Pulse - The price of Indonesian tea is likely to increase to US$2 per kg this year from an average of US$1.17 in 2000, according to a new report.

Suwadji Munawar, the president of the state-owned plantation company PTPTN VIII, said demand for Indonesian tea was growing from Europe, Australia, Middle East and Malaysia.

Munawar attributed the increase in demand partly to call from the Food and Agriculture Organization to drink more tea.

In addition, stocks owned by buyers are dwindling as auction had been stopped for the two weeks because of the year end celebrations, he said.

He said the quality of Indonesian tea mainly black tea is good.

In the first auction this year, the tea price averaged 120 cents per kg. The price even reached 190 cents for certain types like BP1 from the Arumsari plantation in West Java.

Munawar said the prices are expected to continue to pick up this year.

Indonesia with production totaling 165,000 tons a year, is the fifth largest tea producer in the world after Kenya, India, China and Srilanka.

(ANTARA) (11/01/2001)

JAKARTA, Jan 12 Asia Pulse - Indonesia's tea exports this year are expected to rise by around 10 percent to 130,000 tons, The Jakarta Post reported.

The paper quoted the Association of Indonesian Tea Producers as saying that many tea growers planned to increase their exports to benefit from the rise in the tea price in the world market.

The association said the international tea price surged to an average of US$1.17 per kilogram last year from between $1.05 and $1.07 per kilogram in 1999.

It estimated that the price could further increase this year on the back of a tighter supply.

Last year Indonesia produced 165,000 tons, of which 80 percent was exported to the United States, Britain, Russia, Europe, Pakistan and Middle East countries. (ANTARA) (12/01/2001)