The Jakarta Post, Jakarta
Indonesia's rubber production is likely to increase by 10 percent this year to 2.6 million tons from 2.37 million tons last year, an executive of the Indonesian Rubber Research Institute says.
Institute director Chairil Anwar said Tuesday that over the last three years, the country's rubber production had increased by 7 percent per year on average.
"As one of the world's main suppliers of rubber, Indonesia is expected to boost its rubber production year by year to meet the increasing demand worldwide," he said.
Indonesia is currently the world's second largest producer of natural rubber after Thailand, where production reached 3 million tons last year.
Indonesia exports the bulk of its rubber to a number of countries, with China being its main market, importing between 200,000 and 300,000 tons per year. It also exports to the United States, Japan and several European countries.
Rubber exports were valued at US$4 billion last year, and are expected to be worth between $4 billion and $4.5 billion this year.
According to data from the International Rubber Study Group, total global rubber production amounted to 9.26 million tons last year, while total demand stood at 8.97 million tons.
Indonesia is expected to become the world's number one producer by 2020, overtaking Thailand, with a total production of more than 4 million tons.
"Indonesia has a major chance of becoming the main producer as Malaysia has begun to shift its focus to palm oil, while Thailand has to cope with land shortages," Anwar explained.
Indonesia, Thailand and Malaysia, the world's three largest rubber producers, established a tripartite consortium in 2001. They currently supply 80 percent of the world's total demand for rubber.
Indonesia will host an international rubber conference and exhibition in Bali from June 13 through 15. The event will showcase the latest technological breakthroughs by rubber research institutes around the world.
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