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Thailand has withdrawn from INRO while Malaysia will quit the organization later this month.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