NATURAL RUBBER Industry Development Growth in Indonesia


Industry & Marketing Prospects of NATURAL RUBBER In Indonesia
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Industry & Marketing Prospects of NATURAL RUBBER In Indonesia, Indonesia is the second largest natural rubber producer in the world with a production of 3.2 million tons more after Thailand, but Indonesia’s total natural rubber plantation area is the largest in the world with 3.7 million hectares or about 1.5 times the area of Thai rubber plantations. This amount can still be increased by rejuvenating and empowering farmers’ agricultural lands and unproductive land suitable for rubber plantations.

Plantation products have been moving for quite a few years, especially for plantation crops that are oriented to international markets. Increased demand growth in various countries has encouraged price developments, although price fluctuations are also unavoidable due to abundant production during peak production.

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But unfortunately the rubber plantation is still not done seriously. The productivity of rubber plantations is very low due to lack of maintenance and the slow program of replanting even though many plants are aged over 25 years. Rubber plantations are dominated by smallholder plantations and only a small part by private and state-owned plantation companies.

Seeing various issues in this sector, Bizteka-CCI was motivated to write more deeply about the prospects of rubber plantations and their marketing in Indonesia. To support the discussion, primary data was obtained from rubber producers and the user industry. Whereas secondary data was obtained from related agencies such as the Indonesian Rubber Business Association (Gapkindo), Central Bureau of Statistics (BPS), BKPM, the Ministry of Agriculture and the data banks in Bizteka-CCI.