RI plans to cut rubber production to lift prices

RI plans to cut rubber production to lift prices

Dow Jones, Singapore

Indonesia will ask its rubber farmers to shift to palm-oil
planting so as to reduce world rubber supply and lift sagging
world rubber prices, a senior government official said late
Saturday.

Indonesian Industry and Trade Minister Rini Soewandi said this
is in line with Indonesia's international commitment to cut
rubber exports to prop up depressed world prices.

"We will ask farmers to convert rubber farms into palm-oil
plantation," she said.

Soewandi declined to elaborate on this plan, saying that the
details are still being ironed out.

Thailand, Indonesia and Malaysia - the world's biggest rubber
producers and exporters - have pledged to cut rubber exports by
10 percent and output by four percent starting next year to shore
up physical rubber prices.

These countries will hold a tripartite ministerial meeting in
Bali, Indonesia, in December to finalize this plan.