Boost Export, Government Continues to Encourage Optimization of Natural Rubber Utilization

INDUSTRY.co.id - Jakarta, the Government continues to encourage the optimization of natural rubber utilization, because during this absorption is dominated by the vehicle tire industry.

Domestic tire products are one of Indonesia's main export commodities. Of the total production, 70 percent is for export market with value reaching USD1,5 billion per year.

"The government considers it important that efforts to optimize domestic rubber consumption in the country need to be done to increase the added value of the national natural resources potential," said Head of BPPI the Ministry of Industry, Ngakan Timur Antara in Jakarta, Saturday (10/2/2018).

Referring to data of Indonesian Rubber Companies Association (Gapkindo), natural rubber accounted for 45 percent for tire raw materials.

The need of natural rubber in the domestic market is about 600 thousand tons of total production per year which reaches 3.3 million tons.

For that, there is still a great opportunity to create new industrial branches such as aircraft tire industry and aircraft retreading that can absorb enough natural rubber and generate national foreign exchange.

According to Ngakan, the policy for the construction of sea tolls is also a good opportunity for rubber processing industry to support the needs in development port.

"Sea toll development is an opportunity for rubber processing industries such as rubber dock fenders, rubber floating fenders, rubber bumper and others," explained Ngakan.

"Therefore, the government continues to encourage the optimization of the utilization of natural rubber to boost Indonesia's exports," he said.