The government and rubber industry players are targeting exports of rubber and rubber goods in 2021 to reach US$6.3-7.3 billion, 12.5-30.4% higher than the export value in 2020, which reached US$5.6 billion.
The target of achieving rubber exports and rubber goods was agreed in a meeting held by the Directorate-General for National Export Development of the Ministry of Trade on June 21, 2021, in Jakarta, attended by representatives of the Rubber Association of Indonesia (GAPKINDO) secretariat.
The meeting discussed various efforts to develop exports of rubber and rubber goods and various alternative efforts to overcome the obstacles faced in exporting rubber and rubber goods.
Concerning the export performance of January-May 2021, Indonesia’s primary rubber exports are targeted to reach 2.7 million tons during 2021, an increase of about 12% compared to the realization of exports in 2020, while the export value is estimated to reach US$4.4 billion (with an assuming the average price of natural rubber reaches US$1.6/kg).
The meeting also discussed several obstacles faced by exporters in carrying out their export activities, including the policy of eliminating peak electricity tariffs (the case in South Kalimantan), the high cost of shipping (freight costs), and the long-term program of replanting smallholder natural rubber plantation for the sustainability of industrial raw materials. The Ministry of Trade notes these obstacles for further discussion.
Meanwhile, based on information from a tire company, the freight cost for shipping tires to the United States in June 2021 has increased more than ten times from normal conditions.
Bulletin team ***