Russia to Explore Sukhoi Aircraft with Indonesian Rubber

By : Aldo Bella Putra | Monday, July 24 2017 - 20:28 IWST

5166
5166

INDUSTRY.co.id - Jakarta - The Russian government seems very interested in the policy of the Government of Indonesia in implementing the buy-backs with the weapons-producing countries. The country wants a buy-back between Indonesian rubber and its Sukhoi fighter aircraft.

Director General of Foreign Trade Ministry of Trade (Kemdag) Oke Nurwan said, the rubber products that are interested is crumb rubber alias crumb rubber. "They are interested in crumb rubber, but we have not decided yet," Oke said recently.

Rubber commodities are one of the governments under review for trade returns with Russian arms products. According to Oke, the legal umbrella of the type of product agreed with the trade yield mechanism will be made in the form of Ministerial Regulation (Permen).

With Russia, the desired product by the Government of Indonesia is the Sukhoi fighter. The value of trade returns to be made with Russia is around US $ 600 million.

Under this trade return policy, the Indonesian Rubber Companies Association (GAPKINDO) responded positively. They hope that with this coming scheme, there will be market expansion so that rubber price will be stretched back to at least 6 US dollars per kilogram (kg).

In the last three years, world rubber prices continue to plummet. "If rubber prices increase, then small rubber farmers will also profit because the price is raised," said Advisory Board GAPKINDO Asril Sutan Amir.

As is known, since the end of the first quarter, rubber farmers bite the fingers because the price plummeted. The price of rubber at the farmers' level is priced at Rp 6,000 per kg or down 40 percent compared to the beginning of the year which is in the range of Rp 10,000 per kg.

Chairman of the Association of Indonesian Rubber Farmers (Apkarindo) Lukman Zakaria said the decline in rubber prices has occurred since last March. "It has gone down a lot (price), living Rp 6,000 per kg at the farm level," said Lukman.

The decrease of rubber selling price of this farmer, according to Lukman, caused by decreasing world demand. Usually new contracts for rubber purchases are made at the beginning of each year. This is enough to affect the purchase price of rubber at the farm level.

Although not detailed, Lukman said, with many new contracts at the beginning of the year, the current rubber stocks in consumer rubber warehouses and exporters are still full.

"Early last year many new contract orders made their warehouses full, so the price of rubber fell," he said.

Implementation of trade returns is expected to have a positive impact on Indonesia. In addition to rubber, the Indonesian government hopes for other value-added products, for example, with military armaments tradeoffs with Russian armaments.

News Comment

Today's Industry

PT Surya Esa Perkasa Tbk. (ESSA: IJ)

Selasa, 26 September 2023 - 07:45 WIB

ESSA Secures Gas Contract Extension for LPG Refinery

PT Surya Esa Perkasa Tbk. (ESSA: IJ), a publicly listed company engaged in the Energy and Chemical sectors through its LPG (Liquefied Petroleum Gas) refinery and Ammonia plant today (22/9) announced…

(kiri-kanan) Cahyo (operations manager PT Eco Paper Indonesia), Kuswara ( Direktur ALDO), Herwanto Sutanto (Presdir ALDO), dan Herlambang Putra Sujadi (Direktur PT Eco Paper Indonesia)

Selasa, 26 September 2023 - 06:45 WIB

ALDO Strengthens PT Eco Paper’s Business of Recycled Brown Paper Production

PT Alkindo Naratama Tbk (ALDO), a listed company engaged in the integrated paper and chemical business, plans to inject additional working capital of around IDR 40 billion into its subsidiary…

"CLEO", PT Sariguna Primatirta Tbk (Tanobel Group)

Sabtu, 23 September 2023 - 11:33 WIB

Growing Above Industrial Average, CLEO Strives for Innovation

Producer of bottled drinking water with the brand "CLEO", PT Sariguna Primatirta Tbk (Tanobel Group) targets its sales in 2023 to grow above the average of the bottled drinking water (AMDK)…

PT Inocycle Technology Group Tbk ("INOV")

Kamis, 14 September 2023 - 15:15 WIB

INOV Poised to Absorb PET Recycling Market Potential

The prospects of PT Inocycle Technology Group Tbk ("INOV") a public company in the field of recycling plastic (PET) bottle waste into Recycled Polyester Staple Fiber (Re-PSF), looks bright for…

Participants of the 43rd ASEAN Summit enjoy the gala dinner at Hutan Kota GBK in Jakarta, Wednesday (09/06). (Photo by: BPMI of Presidential Secretariat)

Senin, 11 September 2023 - 09:07 WIB

Indonesian Cuisine, Cultural Performances Enliven Gala Dinner of 43rd ASEAN Summit

President Joko “Jokowi” Widodo and First Lady Iriana Jokowi hosted a gala dinner for leaders of ASEAN member states, partners, and international organizations at Hutan Kota restaurant in…