Indonesian Rubber Production and Natural Rubber Exports

Indonesian Rubber Production and Natural Rubber Exports.

Tree rubber requires temperatures higher than the constant (26-32 degrees Celsius) and the environment that is moist in order to produce maximum. The conditions of these exist in Southeast Asia where most large rubber world is produced. About 70 percent of global rubber production comes from Thailand, Indonesia, and Malaysia.

It takes seven years for a rubber tree to reach its production age. After that, the tree of rubber can produce up to age 25 years. Due to the long cycle of this tree, short-term supply adjustments cannot be made.

Country Largest Natural Rubber 

 (in tons)
1. Thailand4,070,000
2. Indonesia3,200,000
3. Malaysia1,043,000
4. Vietnam1,043,000
5. India  849,000

Natural Rubber in Indonesia

Indonesian Rubber Production and Export

As the second-largest rubber producer in the world, the amount of Indonesian rubber supply is important for the global market. Since the 1980s, industrial rubber Indonesia has experienced a growth in the production of the stable.

Most of the results of the production of rubber state are about 80 percent is produced by the farmers small. By because it’s, plantations Government and the private sector has a role that is small in the industrial rubber domestic. Production rubber Indonesia comes from: 1. South Sumatra 2. North Sumatra 3. Lists 4. Jambi 5. West Kalimantan

Potential of Lobster in Indonesia and its Producing Regions

The total area of plantation rubber in Indonesia has increased in a stable for a decade past. In the year 2016, the plantation of rubber in the country have reached broad a total of 3, 64 million hectares. Because the prospect of industrial rubber positive has no transition from the plantations of commodities such as cocoa, coffee, and tea, into plantations of oil palm and rubber.

Over several years this number of plantation rubber belonging to farmers of small increases, while plantations the government slightly reduced, the possibility for movement of the focus them into the garden of coconut oil are extensive. The extent of plantation rubber player privately large decrease in the years 2010 and 2012, but rose quite quickly started from the year 2013.


Rubber Plantation in Indonesia

Farmers Small2,923,08
(in thousand ha)
Government 239 230
(in thousand ha)
Large private sector (in thousand ha) 284 315
(in thousand ha)

Approximately 85 percent of the production of rubber Indonesia exported outside the country. Nearly half of the rubber that was exported is shipped to countries other than Asia, followed by the United Northern and Europe. Five countries most many importing rubber from Indonesia is the United States (which consume nearly 22 percent of total exports of Indonesia), the Republican People’s of China (PRC), Japan, Singapore, and Brazil.

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Domestic rubber consumption in Indonesia

Mostly absorbed by Indonesia’s manufacturing industries  (especially the automotive sector) Given the industrial manufacturing industry’s difficulty to evolve significantly, the consumption of rubber in the market domestic only grows with a little alone.


Indonesian Natural Rubber Production

Compared to other rubber- producing competitor countries, Indonesia has a low productivity level per hectare. It is involved due to the fact that the age of trees the rubber in Indonesia generally already old combined with the investment that is lower than the farmers small, thus reducing the results of the harvest.

While Thailand produces 1,800 kilograms (kg) of rubber per hectare per year, Indonesia only manages to produce 1,080 kg/ha. Both Vietnam (1,720 kg/ha) and Malaysia (1,510 kg/ha) have the productivity of rubber that is much higher.

The downstream rubber industry in Indonesia is still not much developed. When this, the country is dependent on imports of products of rubber processed due to the lack of facilities processing domestic and lack of industrial manufacturing is growing well. The low consumption of rubber domestically become the cause of why Indonesia exported about 85 percent of the results of the production of rubber.

Despite that, in some years past seemed no change (albeit slow) because the number of exports slightly declined due to increased consumption of domestic. Approximately half of the rubber nature is absorbed by the domestic use by the industrial manufacturing of tires, followed by the glove hand rubber, yarn rubber, footwear, tire retreading, glove hand medical, and tools.


Indonesian Rubber Exports of Quality

As an importer of rubber biggest in the world, the policies of the PRC could have an impact is very broad for industrial rubber world. At the end of 2021, the PRC Government decided to approve a new standard for the import of rubber compounds.

The content of rubber raw are permitted in the compound rubber which is imported was reduced from 95 to 99.5 percent becomes 88 percent, implying that imports of compound rubber to China are subject to customs import 20%  (a rate which is equal to the customs import rubber nature). Policies PRC was new this is a blow for the suppliers of rubber from Indonesia because it causes a decrease in the use of a compound rubber in the country with the economy the biggest second in the world.

Problems Another is the US move the tire made in Indonesia from the system preferences in general (generalized system of preference). The US program is designed to support the countries growth by cutting customs imports and taxes for approximately 5,000 products from 123 countries. Tires made in Indonesia moved from the list of the system’s because the US believes that the industrial tire in Indonesia is already fairly competitive. This means that tire exports to the US are now subject to a 5 percent import tax.


Natural Rubber Market Trends

Movers primary for the market of rubber globally is regional Asia- Pacific region in which the request will be rubbery nature grow with strong, led by China, consumers rubber leading in the world and which is expected to be the consumption of nearly 40 percent of the total consumption of rubber world in the year 2021 (most large used in the tire manufacturing industry).

While it is, growth that is strong in the consumption of rubber is also expected to occur in Indonesia, India, Vietnam, and Thailand for industrial automotive are growing in countries of this. As with most commodities principal more, the price of rubber international has experienced a pressure ranging from 2011 when the activity of the economy globally weak (which impacts negatively on the industry automotive) as well as the abundant supply of rubber nature.

Besides that, the price of oil crude that is low makes rubber synthetic very competitive, so the price of rubber nature drops are significantly between early 2011 and late 2017. While it is, progress in the development of tire-based bio also is a threat for industrial rubber.

Graph first at the bottom of this show a decline sharply in the price of rubber nature ranging from the beginning of 2011 because of the abundant supply of rubber, growing economy that is sluggish and competition are strict of rubber synthetic.

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World Natural Rubber Prices

Graph two shows the recovery of sharp price rubbery nature in the quarter-final in 2017 and early 2018. The reason for the increase in the price of these is the interruption of supply in Thailand. Flood massive and spread widely in parts of southern Thailand, where most large planting of rubber nationwide occur, have the impact big on the supply of rubber nature  (both in terms of production and distribution ). The severe drought was also cited as the reason for the weak rubber production in Thailand at that time.


World Rubber Prices

Country- countries producing rubber leading in the world – Thailand, Indonesia, and Malaysia, also have agreed to restrict the export of rubber through the Agreed Export Tonnage Scheme (AETS), which was approved in an effort to increase the price of rubber nature international. The first agreement took place at the end of 2012. The decline in Chinese rubber demand was one of the main reasons for implementing AETS.

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