Ministry of Industry Urges Rubber Industry in Bengkulu
By : Ridwan And Aldo Bella Putra | Wednesday, August 09 2017 - 17:47 IWST
INDUSTRY.co.id - Jakarta, Rubber is the largest plantation commodity after palm oil in Bengkulu Province. Growth of rubber production in 2012 reached 3.99 percent per year with the growth of production area of 7.26 percent per year.
This was stated by the Minister of Industry, Airlangga Hartarto when receiving the visit of Bengkulu Regent in the Office of the Ministry of Industry, Jakarta (8/8/2017).
"The potential of rubber industry in Bengkulu should be encouraged to increase its growth from year to year," said Airlangga.
As the second largest rubber producer in the world, Indonesia's supply of rubber is important for the global market. Since the 1980s, Indonesia's rubber industry has experienced steady production growth. Most of the country's rubber production, about 80% is produced by small farmers. Therefore, Government and private plantations have a small role in the domestic rubber industry.
Meanwhile, the total area of Indonesian rubber plantations has increased steadily. In 2015, rubber plantations in the country reach a total area of 3.65 million hectares. The number of smallholder rubber plantations has increased, while Government and private plantations have declined somewhat, possibly because of the shifting focus to oil palm.
About 85% of Indonesia's rubber production is exported. Almost half of the exported rubber is shipped to other Asian countries, followed by countries in North America and Europe. The five countries that import the most rubber from Indonesia are the United States (US), People's Republic of China (PRC), Japan, Singapore, and Brazil. The consumption of domestic rubber is mostly absorbed by Indonesia's manufacturing industries (especially the automotive sector).
"Therefore, the growth of rubber industry in Bengkulu should continue to be encouraged to increase its development from year to year," he concluded.