How Hankook Ensures a Sustainable Supply Chain

PT Hankook Tire Indonesia has once again demonstrated its commitment to Environmental, Social, and Governance (ESG) practices, particularly in strengthening the sustainability of the natural rubber supply chain. Through this initiative, the company has distributed rubber coagulant materials consisting of 2,500 kg of formic acid, 1,000 kg of NPK fertiliser, and 200 tapping knives to farmers in Marga Mulia Village, South Sumatra, under the theme ‘Coagulant Aid Program for Quality and Sustainable Rubber’. Indonesia remains one of the world’s second-largest rubber producers. Data from the Central Statistics Agency for 2023 recorded national rubber production at around 2.65 million tonnes. The industry involves various stakeholders, from smallholder plantations, state plantations, to private ones, all together supporting national production. ‘Through this programme, we aim to address challenges in the upstream rubber industry sector, especially amid rising production costs. We understand that quality tyres start with rubber processed through proper coagulation, but the use of certain coagulants still poses risks to health and the environment,’ said Jung Jinkyun, President Director of PT Hankook Tire Indonesia, quoted from his statement on Wednesday, 6 May 2026. On the other hand, the area of rubber plantations continues to shrink with an average annual decline of around 5.7 per cent, ultimately directly impacting the quality and consistency of rubber supply throughout the production chain. In line with these conditions, this programme is part of Hankook’s efforts to strengthen rubber quality from upstream. Through this initiative, the company also encourages more optimal production processes, while maintaining the quality of raw materials used in Hankook tyre products. ‘Therefore, through today’s formic acid donation, we are introducing an environmentally friendly and health-safe thickening agent solution for farmers. And ensuring a more standardised, efficient processing process, the quality of raw materials can be more guaranteed,’ he added. In addition to production equipment assistance, this programme is also equipped with technical training and direct demonstrations to 200 rubber farmers regarding the proper and safe use of formic acid. This education aims to increase farmers’ understanding in supporting superior and sustainable harvest quality, as well as ensuring that fertiliser and formic acid are used correctly according to recommended dosages, to prevent potential environmental pollution while optimising production cost efficiency.