Indonesian rubber output seen stagnant<\/p>\n
JAKARTA (JP): Indonesia is keeping rubber production in 2000
\nat last year's level of about 1.6 million metric tons because of
\na glut in the world market, the Indonesian Rubber Producers
\nAssociation (Gapkindo) said on Monday.<\/p>\n
Gapkindo vice chairman Asril Sutan Amir blamed Thailand's huge
\nproduction, due to its high yield, for the current market
\ncondition, including the low prices.<\/p>\n
With financial and technical support from Japan, a hectare of
\nrubber trees in Thailand can yield more than 1,000 kilograms a
\nyear, Asril told reporters.<\/p>\n
This is in comparison to Indonesia's yield of between 400 and
\n700 kg\/hectare from the 3.2 million hectares of rubber
\nplantations. Sumatra accounts for 65 percent of Indonesia's
\nrubber output, followed by Kalimantan with 24 percent.<\/p>\n
Moreover, Indonesia's rubber production has not recovered from
\nthe impact of the long dry season in 1998, Asril said.<\/p>\n
Thailand is the world's largest rubber producer while
\nIndonesia ranks second, followed by Malaysia.<\/p>\n
The market glut followed the dissolution of the International
\nNatural Rubber Organization (INRO) in October 1999 after Thailand
\nand Malaysia decided to quit the group.<\/p>\n
"Last week, the price increased to 75 U.S. cents per kilogram,
\nbut it has since fallen to below 70 cents, thanks to Thailand's
\ndecision to release its stock," Gapkindo executive director
\nSuharto Honggokusumo said.<\/p>\n
Suharto said that by limiting production, Indonesia hoped the
\nworld market would reach an equilibrium between demand and supply
\nin a few months, and that the price would steadily increase to $1
\na kilogram by July. (07)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesian-rubber-output-seen-stagnant-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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