RI's rubber exports bullish next year

RI's rubber exports bullish next year

JAKARTA (JP): Indonesia, one of the world's biggest natural
rubber producers, must diversify its rubber exports and increase
domestic production of rubber articles to anticipate a better
market situation next year, an analyst says.

"I expect that the current rainy season will contribute to
making the rubber market even more bullish in 1995," Harry
Tanugrama, an expert on rubber trading, told The Jakarta Post
Monday evening.

Harry also cited that the price of the commodity consistently
increased throughout 1994. The price rose from about US$0.87 per
kg in late 1993 to about $1.60 at present.

He said Indonesia's earnings from rubber exports are expected
to increase by 23 percent to $1.2 billion this year from last
year.

"This means that we have to diversify our exports in terms of
destinations and types of rubber products," he said.

Harry noted that Indonesia currently sells most of its rubber
exports as raw materials to tire-producing countries.

"Consequently, we must produce more rubber products and
gradually decrease exports of unprocessed rubber," said Harry,
who is a former executive director of the Indonesian Rubber
Association.

Harry also appealed to Indonesian rubber producers to
cooperate closely with their counterparts from Malaysia and
Thailand, other major rubber producers.

"I'm convinced that a market mechanism will prevail to define
the price of the commodity," said the analyst. (hdj)