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Green Is the N--vGc':'
With Eco-Friendly
Investment options
C d i n Bloodworth.
.
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make high-grade paper.
As for the contriiution of bamboo tothe environment, it reduces erosion as its
roots and fallingleavesabsorb 90 percent
of rainwater compared to between 35 to40 percent by other trees. Bamboo forests
also provide habitat for wildlife andabsorb far more carbon dioxidethanother trees covering a similar area.
Asingle clump of bamboo can produce
15kilometers of marketable wood. The
world market for bamboo is currently
valued at $10 billion This is expected toreach $20billion by 2015.

oney really does grow ontrees -6guratively
speakingthat is.As
investors struggle withthe vagaries of thefinancial markets and thefallingvalueof paper money, many areturning to "real assets" as a means ofpreservingtheir wealth. Real estate is an
example,but when you need cash b a
hurry you cannot sell a bathroom Other
real assets include gold, other commodities. collectiblessuch as works of art and&cultural products. Let's just consider
what investmentopportunitieswe canactually find growingon trees, or in thecase of Agarwood,within the tree itself.
But first we should consider theenvironment.
There is much debate on the negative
impact of irresponsibleagricultural developments.Everyday an area of rainforest
the size of New York City disappears.
ThroughoutSoutheastAsia we are seeing
pristine forests that stood for millions ofyears beingreplaced by vast palrn oil plantations. Many countries are getlingconcerned about the damage beingdone tothe planet France hasjust announcedplans to impose a penal tax on the importof palrn oil. Other countriescould movethe sameway. But there are plenty of otherproducts that are available to investors
who want to keep the planet &en.

In the forestsof SoutheastAsia, includingIndonesia, an evergreenknown as theAquilaria tree grows.Roughly 1percent
willbecome infected by a fungus which
spreads from deep in the heart of thewood. As a result of natural resistance tothe fungus, a thick dark brown resinous
co& is formed. The resin is known as agarwood, which for centurieshas been one of
the most prized and valued aromatic resinsin the world. The resin is used for
medicinal purposes, as an additive inupmarket brands of cosmetics,in aromatherapyand in religiousceremonies.
It is so valuable that farmerswould cut
down 100trees to find the one containing
the prized resin Fortunately this destruction is no longer necessary as the trees can
now be scientificallyinjected so that every
one produces high quality agarwood.

Bunboo-thawondwpkntJatmpha-theb&dld'mlncle'trm

In prehistoric times bamboo would growto heights of over 85 meters. Itis still the fastest growingplanton the planet In recent years
the harvestingof hardwood has
become increasinglychallengingas forests become depleted
and environmentalconcerns
grow. Fortunately bamboo
offers aviable alternative.
.
Every part of the bamboo
plant has avalue. Trunks areused for flooring, construction
and furniture; midsections canbe woven into mats and foodcan be produced from theshoots.The sawdustcreatedduringmillingcan be used toThere is considerable pressure in theworld to rely less on fossil fuels
for our energy needs. There aresomevery clean alternatives
such as geothermal, wind turbines and solar energy.The
capital investmentrequired,however, is still high in terms of
the immediate returns. Nuclear
energyis also considered a"clean" alternative,but the
recent disaster in Japan has
shown the devastating effects
of a nuclear accident.
Fortunately there is anoption that can help to meete n e m needs without destroyingfo&ts and deprivingpeople

M-Aaarwood a resinworth momthanits
G g h t lngoldvof food. The option isjatropha, aninediileplant that cangrow in the most miserable
of soilsand in anywarm climate, whether
tropical or arid. It can survive on as little as
200 mrn of rain per year. Its seeds containup to 40 percent oil, which can easilybe
processed into high-gradediesel fuel. The
quality has alreadybeen demonstrated intrialsby several airlines.
mutarathelabmrml~

For those who can accept the risks of"outside the box" investments, returns
can be expected in the range of 10percent
to 15percent per annurn.But @vestment
opportunities itre generally unregulated
and subject to unknown risks's0 theywould not be appropriate for the small
investor who should stick with more conventional assets. But for the adventurous
and well-heeled investor, planting"money seeds" can lead to a useful financial "harvest" and also contribute to agreener world.
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. Colin ~loodworth,direa~rof PPI Indonesia,

has spentpver 20 years in IndonesiaIf you
have any questionson this ora relatedsubject
you can contact the writer atindonesiarappi-advisory.com