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)