The Indonesian Rubber Council (Dekarindo) states that around 600,000-900,000 hectares or 20-30% of the total rubber plantations in Indonesia must be replanted because they are already old. At present, Indonesia’s total rubber plantations reach 3 million ha. Replanting is needed to maintain national natural rubber production above 3 million tons annually.
Dekarindo Chairman Aziz Pane said, the rejuvenation of the rubber plant had been initiated by the government in 2017 but failed to be implemented due to funding constraints. Rejuvenation of a 1 hectare rubber plant requires at least Rp 50 million.
The problem is the cost, if farmers cut down trees, they will lose income to cover their daily needs. The solution to the social Coast must be found a solution, said Aziz.
Aziz said, there are banks from Europe who are interested in helping the process of replanting rubber plantations in Indonesia. The European bank has an interest in Indonesian rubber plants because it wants to get rubber wood to be processed into rubber powder.
Aziz also said, the use of rubber in the domestic market must continue to be encouraged. If rubber is not widely used, it is feared that rubber plantations will increasingly be abandoned by farmers. Moreover, at this time many rubber trees are attacked by disease and many farmers are replacing rubber trees into oil palm. In fact, competitor countries such as Laos, Vietnam, Thailand and Cambodia, are aggressively developing rubber.
One of Dekarindo’s efforts to encourage the use of natural rubber on the domestic market to be even greater is to propose that the construction of a new National Capital City (IKN) in East Kalimantan (East Kalimantan) use natural rubber raw materials. Dekarindo has submitted the request to the Ministry of National Development Planning / National Development Planning Agency (PPN / Bappenas).
In the new IKN in East Kalimantan, rubber can also be used for construction or construction of earthquake-resistant buildings, port construction, and asphalt roads mixed with rubber. At present, the absorption of natural rubber by the domestic market is still in the range of 600,000-850,000 tons per year, even though local natural rubber production is recorded at 3.50 million tons annually.
To Boost Prices
Previously, The Minister of Agriculture Syahrul Yasin Limpo had also encouraged the use of natural rubber for the construction of road infrastructure projects in the country so that it could help boost the price of these commodities. Every year, Indonesia’s natural rubber production reaches 3.20 million tons and only 0.60 million tons of which are utilized by the domestic industry, on the other hand the price of natural rubber on the international market continues to plummet thereby reducing the income of farmers.
This was conveyed by Minister of Agriculture Syahrul Yasin Limpo (Minister of Defense SYL) when meeting Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono. Both of them discussed rubber and irrigation. SYL and Basuki discussed the collaboration between the two ministries in saving the rubber commodity. This was done as a way to encourage demand after the drop in rubber prices on the world market.
Rubber is a global commodity whose price is determined by the international market which is currently experiencing a downturn. Indonesia is one of the largest natural rubber producers in the world, with annual production reaching 3.20 million tons and 2.40 million tons are exported abroad. ***
Investor Daily, 25/01/2020