RI near to forming rubber body

RI near to forming rubber body

JAKARTA (JP): Indonesia, Thailand and Malaysia plan to set up
an international rubber producers association to replace the
International Natural Rubber Organization (INRO), an executive of
the Indonesian Rubber Producers Association said on Monday.

"Implementation of the plan is awaiting a final decision from
Thailand, the world's largest rubber producer," Surya Mercu told
Antara in Medan, North Sumatra.

He said Thailand's participation was crucial to the viability
of the planned association. It has annual output of two million
metric tons.

"The association will have market clout because the three
founding members account for 85 percent of the world's natural
rubber production," Surya added.

Thailand has withdrawn from INRO while Malaysia will quit the
organization later this month.

"INRO will be meaningless without the participation of these
largest producers," Surya said.

Indonesia is the world's second largest producer with an
annual output of 1.4 million tons and Malaysia third with 900,000
tons.

He said the association would have strong bargaining power in
the market and would therefore be able to influence rubber prices
in favor of the producers.

Surya accused INRO of failing to maintain fair prices for
producers and securing an adequate supply to consumers.

"Since its establishment five years ago INRO
tended to work more for the benefit of consumers than producers,"
Surya said. (06)