Indonesia's rubber exports increase

Indonesia's rubber exports increase

JAKARTA (JP): Indonesia's revenues from natural rubber exports are projected to exceed US$1.85 billion this year, as compared with $1.27 billion in 1994, according to Harry Tanugraha, a former executive director of the Indonesian Rubber Association.

Harry said on Saturday that the increase in export revenue is a result of a 60-percent rise in prices on world markets. The higher demand was due, in turn, to strong demand and the inability of the world buffer-stocking system to meet it.

In 1994 supply shortages were met by the sale of rubber from the International Natural Rubber Organization's stocks.

Harry said the highest price was recorded in the first quarter of this year, which saw the average price move to an all-time high of $1.93 per kilogram. The lowest price of the year was recorded at $1.10 in August.

He said the international consumption of natural rubber might increase slightly this year to 5.75 million tons, up from 5.5 million tons last year.

The volume of Indonesia's natural rubber exports is expected to increase by 10 percent from 1994's figure of 1.22 million tons, Harry said.

Indonesia sends 50.5 percent of its natural rubber exports to the United States, 11 percent to Europe and the remainder to East Asian countries, including China, Japan, South Korea and Taiwan. (08)