February 28, 2023
One by one, the crumb rubber factories in West Sumatra collapsed from business, caused by the lack of supply of raw materials due to land conversion. Dusk when the latex industry in Tanah Gadang begins. The West Sumatra Province Industry and Trade Service (Disperindag) disclosed the closure of the rubber factory. Head of the Non-Agro Industry Sector, West Sumatra Disperindag Wahendra, said three rubber factories closed in early 2023. The closure, he said, was due to a shortage of natural rubber latex supply from farmers.
Wahendra revealed to Bisnis in Padang Monday (27/2) that the managers of the rubber factory stated that if the factory continued to operate amid a small supply of raw materials, losses would arise for the company because production costs do not offset operational costs.
He explained that closing the factory had started in December 2022, and the matter of workers’ rights was claimed to have been resolved. Likewise, the factory closure statement has also been submitted to the Department of Industry and Trade. One more company is currently in the process of closing arrangements. With the closure of the three factories, five rubber companies remain in the region. However, the remaining five companies are not rubber factories but latex supply companies. Therefore, said Wahendra, the closure of the three rubber factories will have an impact on the five existing rubber companies.
Wahendra said the five companies today are classified as small companies, their role is to supply rubber. It is not like the three closed factories, apart from receiving rubber, started drying it before it was exported. The three rubber companies that closed have been operating in West Sumatra for quite a long time, namely since the 1980s and 1990s. With conditions like these, Wahenda emphasized that currently, the West Sumatra Provincial Government, together with other stakeholders, is looking for a solution so that the impact of the closure of the three rubber factories does not have a negative impact on rubber plantations in West Sumatra.
Land Converted from Natural Rubber to Other Profitable Commodities
Separately, Acting as Head of the West Sumatra Food Crops and Horticulture Office, Ferdinal Asmin, said that rubber plantations in West Sumatra are in a dilemma. Many farmers convert their land from rubber plantations and replace it with other profitable agricultural commodities. The leading cause of this problem is that rubber prices seem difficult to improve from year to year. Meanwhile, the harvesting process requires a lot of time and effort. The price of natural rubber in West Sumatra is still low at the farmer’s level. The price cannot cover the cost of farming systems/processes carried out by farmers.
Meanwhile, those low prices at the farmer’s level cannot foster farmers’ enthusiasm to continue to harvest their rubber.
Ferdinal said that in response to this condition, the West Sumatra Provincial Government would not let go of their hands and allow rubber plantations to become extinct. Because rubber is one of the leading commodities in West Sumatra. The steps taken need to prepare for the downstream, such as the Yield Management Unit (UPH). Thus the quality of rubber can be improved. According to Ferdinal, the quality of rubber is an essential point following the Regional Regulations on Superior Commodities in West Sumatra. Following the Local Regulation on Superior Commodities, what needs to be done is rubber management, quality, and marketing. For this reason, the UPH will be managed by the Farmers Group so that the harvest can be well organized.
Ferdinal said that rubber plantations in West Sumatra are spread across Pasaman, South Solok, Dharmasraya, Sijunjung, and Limapuluh Kota districts, and there are also Padang cities. Overall, rubber plantation land in W Sumatra will reach 180,213.09 ha in 2022; in 2021, the land area will be 189,319.19 ha. This means there has been a reduction in 106.10 ha of rubber plantations. From this land area, rubber production in W Sumatra in 2022 will be 156,486.20 tons, and in 2021 it will be 145,585.06 tons. From the production side, the rubber commodity in West Sumatra has increased by 10,901.14 tons.
The number of rubber farmers in West Sumatra from provisional data for 2022 will reach 162,946 households, and in 2021 139,200 households or the number of rubber farmers in West Sumatra has recorded an increase of 23,751 families. For this reason, Ferdinal stated that the West Sumatra Provincial Government would not allow the rubber commodity in the area to run out over time to deal with these existing problems. The price issue will be pursued by increasing the quality of rubber.
Farmers Choose to Find Other Alternatives Income (Abandoned Their Rubber Plantation)
Meanwhile, a rubber farmer in Sitiung, Dharmasraya Regency, Rian, said that for almost two months since the beginning of 2023, he has no longer harvested rubber on his plantation because he is tired of seeing the price of rubber not improving.
Rian admits that he has a 3-ha rubber plantation, has not cultivated it for the last two months, and has just abandoned it. He conveyed that with the condition that the price of rubber is not up to Rp. 10,000/kg. If forced to continue harvesting rubber, the pegs are the same size as the poles.
According to Rian, if the rubber plantation is harvested at this time, it will only take time because the costs incurred will be greater than the value of the results obtained. He admits that he has not yet confirmed what steps will be taken for his plantation, because he is currently choosing to pursue other businesses. ***
Source: Bisnis.com