Ministry of Industry: National Rubber Production Still Improved

By : Ridwan And Aldi Firhand. A | Wednesday, October 04 2017 - 23:10 IWST

Rubber Garden Illustration (ist)

INDUSTRY.co.id - Jakarta, Indonesia became one of the world's major natural rubber producing countries with production reaching more than three million tons per year. Currently, the current potential land reaches 3.5 million hectares.

"National rubber production can still be improved again," said Secretary General of the Ministry of Industry, Haris Munandar in Jakarta (4/10/2017).

Rubber is one of the commodities of plantation products that have a strategic role in the economic activities of Indonesia. Moreover, the consumption of natural rubber is currently around 580 thousand tons per year. Therefore, efforts are needed from the government in order to increase the consumption of natural rubber in the country.

"The government considers that measures to increase domestic rubber consumption in the country need to be done soon in order to increase the added value of national natural resources potential," said Haris.

In addition, efforts to increase consumption of natural rubber in the country, also need to be supported by the ability of national industry in the absorption of these commodities. "Therefore, the government is committed to encouraging the growth of the rubber goods industry in order to realize the program of increasing domestic consumption of natural rubber," he added.

Based on this, the Ministry of Industry has made efforts through policies, including strengthening the rubber goods industry structure, facilitating the provision of incentives for high-tech industries as well as export-oriented industries; and industrial estate development.

Haris added that the program to increase the consumption of local natural rubber, should be accompanied also by sustainability programs and development of existing industries. For example, the tire industry, as an industry that absorbs 45 percent or about 270 thousand tons of total consumption of natural rubber in the country.

Moreover, domestic tire products are one of Indonesia's main export commodities. Of the total production, 70 percent is destined for export market with value reaching 1.5 billion US dollars per year.