I'nesia rubber industry on rise
Indonesia's rubber production is likely to increase 9.7 per cent this year to 2.6 million tonnes, from 2.37 million tonnes last year, says the Indonesian Rubber Research Institute.
Director Chairil Anwar said on Tuesday that over the last three years, the country's rubber production had increased 7 per cent a year on average."As one of the world's main suppliers of rubber, Indonesia is expected to boost its rubber production year by year, to meet the increasing demand worldwide," he said. Indonesia is currently the world's second-largest producer of natural rubber after Thailand, where production reached 3 million tonnes last year. Indonesia exports the bulk of its rubber to a number of countries, with China being its main market, importing 200,000-300,000 tonnes a year. It also exports to the United States, Japan and several European countries. Rubber exports were valued at US$4 billion (Bt139 billion) last year and are expected to be worth $4 billion to $4.5 billion this year. Data from the International Rubber Study Group show global rubber production totalled 9.26 million tonnes last year, while total demand stood at 8.97 million tonnes. Indonesia is expected to become the world's No-1 producer by 2020, with a total production of more than 4 million tonnes, overtaking Thailand. "Indonesia has a major chance of becoming the main producer, as Malaysia has begun to shift its focus to palm oil, while Thailand has to cope with land shortages," Anwar explained. Indonesia, Thailand and Malaysia, the world's three largest rubber producers, established a tripartite consortium in 2001. They currently supply 80 per cent of the world's total demand for rubber. Indonesia will host an international rubber conference and exhibition on Bali from June 13-15. The event will showcase the latest technological breakthroughs by rubber research institutes around the world.
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