ID :
34170
Fri, 12/05/2008 - 20:57
Auther :
Shortlink :
http://m.oananews.org//node/34170
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RI RUBBER PRODUCERS TO CUT EXPORTS IN 2009
Jakarta, Dec 5 (ANTARA) - Indonesian rubber producers are planning to reduce the volume of their rubber exports in an effort to reverse a continuous slide in the commodity's world price, a spokesman said.
The chairman of the Indonesian Rubber Producers Association (GAPKINDO), Daud Husni Bastari, said here on Friday the extent of the export cut would be set in consultation with two other rubber producing countries, namely Malaysia and Thailand.
"We are going to discuss by how much Indonesia's rubber exports are to be cut. Thailand and Malaysia will also calculate how much. But I propose that our rubber exports be reduced by about 10 to 20 percent next year," Bastari said.
He said that the plan to reduce the rubber exports were intended to balance supply and demand in the world market so that the price could be set at a stable level.
The rubber price in the world market reached 180 dollar cents per kg in early November 2008. In late October 2008, it was recorded at 166 dollar cents per kg but in late November 2008 it dropped further to 135 dollar cents per kg.
Though GAPKINDO is planning to cut its exports, Bastari called on its members to continue buying raw rubber from farmers, however.
He admitted rubber business was a strategic industry for both farmers and businesspeople because it concerned the circulation of a huge amount of money.
A rubber processing factory with a capacity of 100 tons per day for example would need a fund of Rp500 million a day to purchase 100 tons of raw rubber, with the assumption that the price of rubber was Rp5,000 per kg.
In South Sulawesi alone, the money circulation in the rubber business reached Rp55 billion per day, he added.
In order to stabilize rubber price in the world market, Indonesia, Malaysia and Thailand will meet on December 12, 2008 to discuss a strategic step.
The three countries supplied 70 percent of the world market.
The chairman of the Indonesian Rubber Producers Association (GAPKINDO), Daud Husni Bastari, said here on Friday the extent of the export cut would be set in consultation with two other rubber producing countries, namely Malaysia and Thailand.
"We are going to discuss by how much Indonesia's rubber exports are to be cut. Thailand and Malaysia will also calculate how much. But I propose that our rubber exports be reduced by about 10 to 20 percent next year," Bastari said.
He said that the plan to reduce the rubber exports were intended to balance supply and demand in the world market so that the price could be set at a stable level.
The rubber price in the world market reached 180 dollar cents per kg in early November 2008. In late October 2008, it was recorded at 166 dollar cents per kg but in late November 2008 it dropped further to 135 dollar cents per kg.
Though GAPKINDO is planning to cut its exports, Bastari called on its members to continue buying raw rubber from farmers, however.
He admitted rubber business was a strategic industry for both farmers and businesspeople because it concerned the circulation of a huge amount of money.
A rubber processing factory with a capacity of 100 tons per day for example would need a fund of Rp500 million a day to purchase 100 tons of raw rubber, with the assumption that the price of rubber was Rp5,000 per kg.
In South Sulawesi alone, the money circulation in the rubber business reached Rp55 billion per day, he added.
In order to stabilize rubber price in the world market, Indonesia, Malaysia and Thailand will meet on December 12, 2008 to discuss a strategic step.
The three countries supplied 70 percent of the world market.
