Third Quarter of 2017, Karate Production Kirana Megatara Up 10 Percent

INDUSTRY.co.id - Jakarta - PT Kirana Megatara Tbk (KMTR) recorded an increase in rubber production volume in the third quarter of 2017. Rubber production in the period of January to September 2017 rose more than 10%.

Kirana Megatara Director Daniel Tirta Kristiadi said KMTR rubber production was around 400,000 tons. This figure is considered Daniel is still in accordance with the target set by KMTR.

The increase in production is assessed as a result of the improvement of rubber prices. Improvement of the price affects the interest of rubber farmers to do the production. "In the previous year, when the first quarter of low prices so that production comes down," said Daniel.

When compared with the previous year, the current rubber price has been better. "The current price is better than last year although it still has not reached a remunerative price for our farmers," explained Daniel.

Currently the price of rubber is still in the range of US $ 1.5 per kilogram (kg). While in 2016, the price of rubber is only US $ 1 per kg. However, the hargaremunerative according to Daniel ranges from US $ 1.7 per kg.

High prices will affect the income of rubber farmers. Such revenues will increase interest to grow rubber farmers so that the sustainability of raw materials can be maintained.

However, government assistance is needed to maintain the growth of rubber industry. This can be done with the intensification of rubber rejuvenation program. In addition, credit assistance can also be given to rubber farmers.

KMTR targets rubber production by the end of 2017 to be 500,000 tons. This figure is not much increased from the achievement of third quarter.