ID :
16759
Sat, 08/23/2008 - 07:58
Auther :
Shortlink :
http://m.oananews.org//node/16759
The shortlink copeid
PRODUCTION OF 16 RUBBER FACTORIES IN N SUMATRA MAY DECLINE
Medan, N Sumatra, Aug 22 (ANTARA) - Sixteen rubber factories in North Sumatra are now on the verge of closure because it has become increasingly difficult for them to obatain the raw materials, in addition to financial problems due to the high prices of rubber processing material (bokar).
"These problems have become particularly threatening since the last two years. This year, North Sumatra's rubber exports will drop due to the declining supplies from Jambi, Riau, and West Sumatra," chairman of the Indonesian Rubber Producers Associaiton (Gapkindo), North Sumatra chapter, Fauzi Hasballah, said in Medan on Friday.
He made the remarks on the sidelines of a national consultative meeting of the National Association of Indonesian Container Depots (ASDEKI) in Medan.
And with regard to the increased prices of "bokar" which havereached Rp18 thousand to Rp25 thousand per kg, he said it has become increasingly difficult for the producers to secure a loan from banks.
"It must be admitted that the life of the crumb rubber industries in North Sumatra is now on the verge of collapse. Right now the production of the rubber industries had dropped to 60 percent of their production capacity," Fauzi said.
He estimated that this year, North Sumatra's rubber exports may drop by five percent compared to last year's.
While last year, Nor Sumatra was still able to export 506,036 tons of its rubber, this year it may reach only 480 thousand tons.
This is regrettable, because in 2007 the rubber exports from the province had already dropped 23 percent from that in 2006.
"These problems have become particularly threatening since the last two years. This year, North Sumatra's rubber exports will drop due to the declining supplies from Jambi, Riau, and West Sumatra," chairman of the Indonesian Rubber Producers Associaiton (Gapkindo), North Sumatra chapter, Fauzi Hasballah, said in Medan on Friday.
He made the remarks on the sidelines of a national consultative meeting of the National Association of Indonesian Container Depots (ASDEKI) in Medan.
And with regard to the increased prices of "bokar" which havereached Rp18 thousand to Rp25 thousand per kg, he said it has become increasingly difficult for the producers to secure a loan from banks.
"It must be admitted that the life of the crumb rubber industries in North Sumatra is now on the verge of collapse. Right now the production of the rubber industries had dropped to 60 percent of their production capacity," Fauzi said.
He estimated that this year, North Sumatra's rubber exports may drop by five percent compared to last year's.
While last year, Nor Sumatra was still able to export 506,036 tons of its rubber, this year it may reach only 480 thousand tons.
This is regrettable, because in 2007 the rubber exports from the province had already dropped 23 percent from that in 2006.
