Rubber association predicts 5% growth in production
Rubber association predicts 5% growth in production
JAKARTA (JP): The Association of Indonesian Rubber Producers
(Gapkindo) predicts the country's rubber production will grow by
5 percent this year to 1.83 million tons from 1.75 million tons
last year thanks to the harvest of new trees.
Gapkindo executive director Suharto Honggokusumo told The
Jakarta Post on Wednesday, rubber trees which were planted
several years ago, were expected to produce their first harvest
this year.
"We'll start taking yields from our new rubber trees this
year," Suharto said.
The country's rubber output rose slightly last year to 1.75
million tons from 1.71 million tons in the previous year.
Suharto said that the El Nino climatic phenomenon, which was
expected to occur in the middle of this year, could further boost
the country's rubber output as the dry weather, caused by the El
Nino effect, would prolong the harvest season for farmers.
"If it comes (El Nino), the rise in rubber output would
probably be higher," he said.
Experts have said El Nino, which was blamed for severe
droughts across Indonesia and the region in 1997, was likely to
return in the middle or at the end of this year, albeit in a
milder form compared to 1997.
Suharto, however, warned although El Nino would help boost the
country's rubber output this year, output could plunge next year
as prolonged drought might reduce yields of rubber trees.
Indonesia is one of the three biggest rubber exporting
countries together with Malaysia and Thailand. The three
countries account for about 80 percent of the world's rubber
production.
Around 90 percent of Indonesia's rubber production is targeted
for export, while the remaining 10 percent goes to local
industries.
Suharto predicted the country's exports would remain stable in
terms of volume this year, but he could not estimate the total
value of the exports, citing the fluctuating rubber price.
He said the rubber price on the international market was very
sensitive to the fluctuation in the currency market.
"Our exports will reach 1.4 million tons this year. But, we
cannot predict the total value," Suharto said.
The country's rubber exports stood at 1.38 million tons valued
at $888.62 million last year, as against 1.49 million tons valued
at $849.10 million in the previous year.
Indonesia exports its rubber to the United States, Japan,
Singapore and European countries with the U.S. absorbing more
than 40 percent of the exports.
Suharto said the price of rubber was at 51.5 cents per
kilogram at present, down from 62 cents last year.
In 1999, the price hovered at 49 cents per kilogram,
according to Suharto. (03)