Skip to content 
Below you will find our most Frequently Asked Questions about our Indonesia Agarwood Plantation Ownership Opportunity. If you have any questions that are not listed below, please do not hesitate to contact us.
Please Note: The below F.A.Q. is valid for our plantations in Indonesia only!
Q: What EXACTLY is Agarwood and OUD Oil?
Agarwood is the “Heartwood Resin” of Aquilaria Tree. Plantations International uses proprietary steam distillation technology to extract the precious Oud Oil from the Agarwood. Oud Oil is used in 100’s of premium fragrances around the world as well as countless other commercial and medicinal uses. Please Watch The Below Video First, before you read the rest of the FAQ’s. The video will give you an in depth understanding of what exactly Agarwood and Oud Oil are and their current market demand.
Q: Why should I add Agarwood to my portfolio?
Due to its high margins and very low volatility, Agarwood and forestry in general is considered a very safe asset class. Forestry consistently outperforms most other asset classes such as stocks, bonds and even fixed deposits. Agarwood is by far the most valuable wood in the world. Demand for Agarwood and Oud Oil is 80% higher than current supply levels, making Agarwood a safe and secure asset class to add to your portfolio.
Q: Who are the main buyers and distributors of Agarwood and Oud Oil?
The main buyers and distributors of Agarwood and Oud Oil are…
- Hundreds of Fragrance Houses / Cosmetic Companies
- Pharmaceutical companies and companies producing Traditional Chinese Medicines
- Countless retailers mostly in the Middle East and Gulf States.
- Agarwood chip and Oud Oil wholesalers
There is one Oud retailer in the middle east that has over 800 stores, Click Here to learn more.
Q: What is the global demand for Agarwood Products?
The current market for Agarwood derived products is worth over USD 12 Billion Annually and growing, with 12,000 kilograms of Oud Oil traded annually. Indonesia is by far the world’s largest exporter of Agarwood, exporting over 4 million Kg. of Agarwood annually.
Q: Since Oud Oil is sold by the “Tola”, what exactly is a Tola a unit of measurement?
A Tola is a unit of measurement most commonly used in the measurement of commercial gold. A Tola is 12 grams.
(1 Tola = 12 Grams)
Q: How many Tolas of Oud Oil are my trees expected to yeild on a per tree basis?
Statistically speaking each of your trees will yield 2-4 Tolas of Oud Oil by year 7, but since your trees are living, biological and constantly growing organisms, we cannot state the actual amount of Oud Oil that will be yielded on a per tree basis, but based on years of extensive research and experience we can accurately say that each of your trees will yield 2-4 Tolas of Oud Oil by year 7, making your average Oud Oil yield at 3 Tolas Per Tree.
Highest Yield Per Tree: 4 Tolas
Lowest Yield Per Tree: 2 Tolas
Average Yield Per Tree: 3 Tolas
Q: What is my minimum guaranteed price of Oud Oil that I will receive on per Tola basis?
Plantation International offers a minimum guaranteed price of €270 per Tola. Since your trees are expected to yield an average of 3 Tolas Per Tree. Your expected returns are €810 on a Per Tree Basis, before harvest fees are deducted.
Q: What is my entry price and what kind of returns can I expect?
Your entry price is only €247 per tree and trees are sold in minimum blocks of 25, this means that 25 trees are only €6,175. Your expected returns are 14.77% based on our guaranteed sales price of €270 per Tola.
Q: Can I purchase more than 100 Trees?
Yes, but due to limited supplies the current maximum permitted on a per client basis is 1,000 trees.
Q: What exact documentation will I receive to document the purchase of my trees?
You will receive the following documents….
- A sublease agreement that will state your exact details, the exact amount of Aquilaria tree saplings planted and
their exact geographical coordinates. - A management agreement covering all of Plantations Internationals obligations to you during the 7 year term.
- A certified Tree Ownership Certificate, stating the exact amount of trees you own and their exact geographical coordinates.
Q: How long is my sublease for?
Your sublease is for maximum of 15 years.
Q: Who exactly is PT Gaharu Kapita Indonesia?
PT Gaharu Kapita Indonesia is a 100% fully owned subsidiary of Plantations International in the Republic of Indonesia. A copy of the articles of incorporation are available upon request.
Q: Why is the harvest cycle 7 Years? Can I harvest my trees early?
It takes a minimum of 7 years for the Aquilaria tree to produce a commercially viable level of marketable agarwood that is suitable for Oud Oil distillation. An early harvest is not recommended as your trees have not had sufficient time to produce a sufficient amount of agarwood to yield the expected 3 Tolas of Oud Oil per tree.
Q: Since my sublease is for 15 years, can I let my trees grow more to increase the quantity of Oud Oil that my trees will produce?
Yes, you can let your trees grow all the way till the end of your sublease. On average the Oud Oil count in your trees is expected increase at a rate of 10% per year. You are under no obligation to harvest at year 7, you may select to harvest at any time between years 7 to 15. Please see below table of harvest yields on yearly basis.
Q: What makes the Aquilaria tree so special and why is Agarwood so valuable?
Agarwood from the Aquilaria tree has been used by Christians, Muslims and Hindus alike in countless religious ceremonies since the beginning of recorded time. Legend has it that when Adam and Eve were banished from the Garden of Eden, they were allowed to take with them but one item. It was a branch from an Aquilaria tree, within which lay one of the most remarkable and valuable natural substances known to man.
It was mentioned in the bible that Nicodemus brought “a roll of myrrh and aloes” weighing about 100 Roman pounds, to be used in preparing for Jesus’ ascension in Heaven. The aloes brought by Nicodemus is Agarwood as referred to in the Hebrew Scriptures and Muslim Hadiths.
Agarwood has been revered by civilizations, religions and cultures for thousands of years for its health-giving properties and positive psychoactive effects.
The Aquilaria tree develops the resinous Agarwood heatwood in response to “infection” – and this could be anything from a microorganism, to a fungus, to a lightning strike. Unfortunately, only approximately 7% of trees in the wild develop the heartwood resin naturally and infection is not superficially obvious.
This has resulted in uncontrolled and excessive logging and the near decimation of the Aquilaria tree species. Across Asia illegal loggers have been indiscriminately felling Aquilaria trees by the thousands in the unscrupulous hunt for their precious inner Agarwood, with little regard to the future stocks in the wild.
Legal intervention was drastically required, and in 2004 CITES (The Convention on International Trade in Endangered Species) stepped in and gave the Aquilaria tree an “Appendix 2” classification, listing it as endangered species, meaning that it wasn’t outright banned, but the agarwood trade was to be heavily controlled and regulated. CITES achieved this by requiring a CITES certificate for both import and export of all agarwood and agarwood Oud Oil derived products. Today all Oud Oil and Agarwood that is traded globally requires certification and approval from CITES.
Q: The Aquilaria tree is currently listed as an endangered species by CITES, how does this affect me?
As long as your trees are not harvested from the wild, and are exclusively harvested from legal sustainable plantations and those plantations can provide chain of custody documentations like Plantations International can, your trees are 100% CITES Compliant. Also, Plantations International will obtain CITES certification for all your Oud Oil prior to its exportation and sale. You will be provided with a certified copy of the CITES certifications and export certificates for your trees at time of harvest. Please visit www.cites.org to learn more about CITES.
Q: What is the Guarantee that my Aquilaria trees will produce Agarwood?
Plantations International through its fully owned Indonesian subsidiary PT Gaharu Kapita Indonesia has entered into a 20 Year Collaboration Agreement with the Instiper Agricultural Institute in Yogyakarta Indonesia, Instiper is Indonesia’s leading agroforestry universities. The scope of the agreement covers the following topics.
- To develop the highest quality inoculation and distillation methods that will limit wastage.
- To achieve a 100% Agarwood infection rate of all inoculated Aquilaria Trees.
- To produce AAA Rated Oud Oil for the export market
- To provide Agarwood distillation facilities for local small scale farmers.
- To share our research with Instiper and local small scale farmers.
Plantations International maintains Agarwood nursery research facilities on the Instiper campus and our scientific team is working diligently along side with the leading Instiper faculty to achieve the above stated goals. In the unlikely event that some of your trees do not produce agarwood, we will replace them with our own trees that are fully infected, thus guaranteeing you that 100% of your trees are Agarwood producing. A copy of the collaboration agreement is available to you upon request, please visit www.instiperjogja.ac.id to learn more about Instiper.
Please Note: The collaboration agreement between Plantations International and Instiper is only based on scientific research and product development and in no way forms any type financial partnership. All day to day plantation management responsibilities and financial obligations towards clients participating in our plantation ownership programme are the sole responsibility of Plantations International and its subsidiaries.
Q: Where does Plantations International have Agarwood plantations?
Plantations International currently has fully owned and planted Agarwood plantations in Indonesia and Malaysia and has working plans for expansion into Thailand and Vietnam by Q1 of 2019.
Q: Where exactly are “MY” trees located?
Your trees are located at one of our plantations in Yogyakarta, Indonesia. The city of Yogyakarta is located on the main Indonesian island of Java, Yogyakarta is a short flight from Jakarta and it has its own International Airport. Yogyakarta is famous for its history and culture as well as the Borobudur Temple. The Borobudur Temple is the world’s largest Buddhist Temple and is considered a UNESCO World Heritage Centre. Please Google Yogyakarta and Borobudur to learn more.
Q: Can I visit my trees? I would really like to see them.
Yes! In fact, we very highly encourage you to visit your plantation and see your trees. Just let us know of your desired visitation dates (15 days’ notice is required) and we will make complimentary hotel arrangements for you and one guest at the Sheraton Resort & Spa in Yogyakarta. We will also arrange for you a guided tour of your plantation and our science and research facilities at Instiper.
Over 90% our plantation owners, once they have visited their plantation are so happy that they immediately increase their initial holdings, because they quickly realize that there are no safer returns in the markets today.
Please Note: All complimentary accommodation is for a maximum 7 days and 6 nights. All complimentary accommodation is for 2 persons, based on a shared deluxe room basis with a king size or two twin size beds (subject to bed availability).
Since Yogyakarta is considered a highly sought after tourist destination, many of our clients have requested to extend their stay and make a holiday out of it, if this will be the case for you, please let us know in advance and our reservation team will handle all your extended bookings and you will receive our corporate discount rates at all local participating hotels.
Q: What if my trees are destroyed or do not grow properly?
Firstly, due to the diligence and expertise of the Plantation International forestry management team, this is highly unlikely. To date we have had no instance of this. However, Plantations International guarantees that should any of your trees be damaged, become sick or die, Plantations International will replace them immediately for free from our own buffer stock, thus guaranteeing you a 100% harvest.
Q: How do I know how much Oud Oil is produced from my trees?
All plantation management duties are carefully recorded. Each individual tree is DNA tagged, bar coded and has a unique identifier number, allowing us to document the trees diameter size throughout its growth cycle. Also, Plantations International carefully records the exact amount of Oud Oil distilled per tree. In addition, each client will receive an audited harvest statement certified by Plantations International.
Q: What is Plantations International’s harvesting fee?
Plantations International will deduct a 20% harvesting fee from your gross proceeds. This 20% includes all operating costs over the full 7 year growth term of your trees.
Q: Are there any additional fees or management charges?
No, all management, administration and maintenance fees are included upfront. We only get our 20% upon successful sales of your Agarwood derived products.
Q: In which currency and in what method will I receive my harvest proceeds?
All harvest proceeds are paid within 30 days of Plantations International selling the harvested product from your trees, by default all harvest proceeds are by bank wire transfer in Euros unless you request otherwise. If you request any other currency besides Euros, currency conversion fees may apply. You will receive copies of all currency conversion statements.
Q: Can I receive my harvest proceeds in cryptocurrency?
Yes, you may opt to receive your harvest proceeds in Bitcoin or Ethereum.
Q: Do I have to pay taxes in my home country on my harvest proceeds?
Plantations International is not licensed to give out tax planning advice, please consult a licensed tax professional in your jurisdiction.
Q: Why does Plantations International offer plantation ownership opportunities to third parties and not just do it all themselves?
The board of directors of Plantations International has made an economically strategic decision to offer third party plantation ownership opportunities alongside our own tree stocks in order to accelerate our corporate growth and become the recognized market leader in the shortest time frame without incurring bank debt. We currently only offer one third of our Aquilaria trees in our third party plantation ownership programme, thus keeping two thirds of our Aquilaria trees for our own purposes.
Q: Can I transfer or sell my trees to a third party?
Yes, your trees are your exclusive private property, you may sell them or transfer them to anyone at any time without restrictions. All transfers are subject to a €5 per tree administration fee and must be paid at time of transfer request.
Q: What happens to my trees if I die or I become incapacitated?
Your trees are part of your estate and can be passed on to whoever you choose, just like your home. In the event of death or incapacitation, the above mentioned administration fee will be fully waived.
Useful Links & Resources
Plantations International Photo Gallery
Plantations International Linkedin