National Policies | Rubber Association of Indonesia

Asked to revitalize cocoa, rubber and coconut plantati, BPDPKS will be changed to BPDP.

July 25, 2024 The government plans to change the Palm Oil Plantation Fund Management Agency (BPDPKS) to the Plantation Fund Management Agency (BPDP). The Coordinating Minister for the Economy, Airlangga Hartarto, conveyed this to the media crew in Jakarta on Thursday (25/7).The conversion aims to increase the plantation sector's results in each region through fund management so that it does not only focus on palm oil plantations. Therefore, Airlangga continued,...

Ministry of Industry Policy Intervention Expected to Reduce The Rate of Natural Rubber Land Conversion

July 12, 2023 The rubber-based industry in Indonesia is entirely developed with a variety of products. To maintain the fulfilment of raw material needs, the Ministry of Industry hopes that the conversion of rubber plantations to other commodities will decrease. Merrijantij Punguan Pintaria, Director of Forest and Plantation Products Industry, Directorate General of Agro-Industry, Ministry of Industry, stated this to Plantation Media. The Ministry of Industry has carried out various...

The Government of Indonesia is Committed to Keep Stabilizing Rubber Prices and Initiating Regional Rubber Exchanges

May 17, 2023 Indonesia, Thailand, and Malaysia, which are members of the International Rubber Tripartite Council or ITRC, are committed to maintaining international natural rubber prices. Indonesia is also currently initiating the establishment of a regional rubber exchange. Strengthening the position of rubber-producing countries in ASEAN, the three countries will continue to persuade Vietnam to join the ITRC and the International Rubber Consortium or IRCo. On the other hand, IRCo...

A Bundle of regulation to Inhibit palm oil-rubber, Indonesia-Malaysia agreed to have Joint Mission Agenda to the European Union

May 26, 2023 Indonesia and Malaysia have agreed to visit the European Union (EU) in a joint mission to Brussels, Belgium, on 30-31 May 2023. This mission will bring up several issues related to EU regulation that could threaten the sustainability of Indonesian and Malaysian several commodities (palm oil to rubber). Starting from anti-deforestation regulations, which will also threaten exports of coffee, cocoa, cattle, timber, rubber, and soybeans, as well...

Rubber Industry Performance Shifts from Contraction to Expansion Status

April 28, 2023 The rubber, plastic goods, and furniture industry experienced an increase and switched from contraction to expansion in April 2023. The rubber and plastic goods industry increased new orders, unlike last month when distributors reduced orders to clear available stock. A spokesman for the Ministry of Industry (Kemenperin), Febri Hendri Antoni Arif, said during April 2023 IKI releases in Jakarta Friday (28/4) that almost the same conditions were...

Natural rubber demand began to slow recovery, and January export actualization rose 11.7% but still overshadowed by Pestalotiopsis leaf fall disease

February 22, 2023 Actualization of natural rubber exports from North Sumatra for January 2023 shipments rose significantly by 11.7% to 29,585 tons compared to December 2022. It is just that this increase, according to the Executive Secretary for the Rubber Association of Indonesia (GAPKINDO) for the North Sumatra Branch, Edy Irwansyah, this actualization has not been able to reach a normal average monthly export of around 38,000-40,000 tons. On a...

The Gloomy Situation for Indonesian Natural Rubber, Rubber Factory Collapsed Due to Land Conversion

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...

Indonesia and Malaysia Open the Table for Discussing the Palm Oil and Natural Rubber Trade Challenges

February 10, 2023 The Minister of Trade (Mendag) of the Republic of Indonesia, Zulkifli Hasan, discussed the challenges and dynamics of global trade in palm oil and natural rubber commodities with Malaysian Deputy Prime Minister and Minister of Agriculture and Commodities, Dato' Sri Haji Fadillah bin Haji Yusof. The Minister of Trade said that he and Deputy Prime Minister Dato' Sri Haji Fadillah Bin Haji Yusof met to discuss increasing...

Overshadowed by discriminatory policies, will the European Union enforce policy for Indonesian natural rubber and palm oil commodities?

January 31, 2023 Indonesia is the world's largest producer of essential commodities, including palm oil and natural rubber. The world's demand for these two commodities is increasing in line with the increase in world population, developments in lifestyle trends, and the increasing variety of consumer products. The current increase in world demand for palm oil is also triggered by the increasing need for renewable energy sources and the disruption of...

Natural Rubber Industry Expected to Support Earthquake-Resistant Infrastructure Industry Development

January 30, 2023 The natural rubber industry is one of the industries that contribute significantly to the national economy. Its contribution to national Gross Domestic Product (GDP) growth will reach IDR 69.07 trillion in 2021, up 1.08% compared to the previous year, which amounted to IDR 68.34 trillion. The Coordinating Minister for the Economy, Airlangga Hartarto, explained that this growth was evident in the rubber industry, especially in the rubber,...

Ministry of Industry: Rubber Commodity Contributes IDR 110 Trillion in Foreign Exchange and Absorbs 60,000 Workers

December 19, 2022 The Director General of Agro-Industry at the Ministry of Industry (Kemenperin), Putu Juli Ardika, said that rubber commodities have an essential role in the national economy. According to data from the Ministry of Industry, the national rubber industry (upstream and downstream sectors) significantly contributes to foreign exchange earnings of US$7.1 billion, equivalent to Rp.110.69 trillion in 2021. Putu said that Indonesia is the world's second-largest natural rubber...

GAPKINDO Held the XIX Congress

August 14, 2022 The Rubber Association of Indonesia (GAPKINDO) successfully held the XIX GAPKINDO Congress at the Grand Hyatt Hotel Bali Nusa Dua, July 20-21, 2022. The Congress under the theme "Synergy to Build a Sustainable and Equitable National Rubber" was attended by the central and branch board of GAPKINDO as well as the head of member companies in GAPKINDO. In his speech when officially open the Congress, the Chairman...

Prices Continue to Drop, Kuta Julung Rubber Farmers Ask for Government’s Attention

April 28, 2022 The price of rubber at the farm level in Kuta Jurung Village, which is still part of the administrative area of Sinembah Tanjung Muda Hilir District, Deliserdang Regency, has decreased, although not significantly. Currently, the price of rubber at the farm level is recorded at Rp. 11,000/kg from the previous set by collectors at Rp. 11,500/kg. Sungkunen Tarigan, a rubber farmer in the village, when contacted on...

Indonesia to begin offering booster shots on Jan 12

Jan 04, 2022 JAKARTA (Jan 3): All adults in Indonesia will get their booster doses for Covid-19 vaccine starting Jan 12, said Health Minister Budi Gunadi Sadikin. Read More

Crumb Rubber Factory in West Kalimantan Experiences the Supply Shortage for Raw Materials (Bokar) Around 50%

Crumb rubber factories in West Kalimantan reported a shortage of raw materials for processing rubber (Bokar), reaching 50% of the total factory capacity that must be produced, so they have to bring it in from outside the region. Chairman of the Rubber Association of Indonesia (GAPKINDO) for West Kalimantan region, Jusdar, as quoted by Antara, Thursday, July 8, 2021, said the main problem faced by rubber factories today is the...

Asphalt Rubber Program and its Challenges for Downstreaming Industry

The fall in the price of rubber on the international market since 2015 has made domestic farmers scream because the selling price is only around Rp. 6,000 per kilogram. However, the condition has helped a little because the production can be absorbed domestically. This happened after the government decided to use rubber asphalt as a raw material for road infrastructure projects. Rubber asphalt is a mixture of asphalt with rubber-based...

Soft-Launching Sustainable Natural Rubber Platform of Indonesia (SNARPI)

"New National Platform for Sustainable Natural Rubber" Concern for the national sustainable development of natural rubber will have a new national platform through the Sustainable Natural Rubber Platform of Indonesia, which is abbreviated as SNARPI, whose existence was announced on April 30, 2021, by the Deputy for Food and Agribusiness Coordination, Coordinating Ministry for Economic Affairs of the Republic of Indonesia. The initial launch or soft-launching of SNARPI was carried...

Hit by La Nina, Production and Export for Natural Rubber in North Sumatra is Depressed

The increasing rainfall intensity due to the La Nina phenomenon has reduced the production of rubber commodities in North Sumatra. Executive Secretary of the Rubber Association of Indonesia (GAPKINDO) for North Sumatra Edy Irwansyah said the decline in rubber production due to this natural phenomenon occurred since October 2020. This caused the crumb rubber processing factory to experience difficulties in supplying raw materials so that the volume of rubber exports...

GAPKINDO Conducts an El Nino and La Nina Webinar

The Rubber Association of Indonesia (GAPKINDO) held a webinar with the theme of the Extreme Climate Phenomenon El Nino and La Nina: Its impact on the production and availability of rubber raw materials crumb rubber industry. The activity, which was held on March 24, 2021, presented a keynote speaker, namely Dr. Dodo Gunawan (Head of the Center for Climate Change Information, Agency for Meteorology, Climatology, and Geophysics), Dr. Thomas Wijaya...

Natural Rubber Commodities in West Sumatra are starting to be replaced by Coconut

The West Sumatra Provincial Government no longer uses rubber as one of the leading commodities. Even starting in 2021, the West Sumatra Horticultural and Plantation Food Crops Office have not allocated rubber plants assistance. Head of the Office of Horticultural Food Crops and Plantation of West Sumatra, Syafrizal, said there were many reasons to no longer concern to plant natural rubber commodity. This, according to Syafrizal, was done because, among...

Thailand Floods Become Momentum for Smallholder Farmers in South Sumatra to Boost Exports

Indonesia and Thailand are the world's two largest rubber exporting countries. It is just that Thailand is experiencing a critical phase due to a decrease in the amount of rubber production due to Pestalotiopsis leaf fall disease (PGDP) and floods that have hit several rubber-producing areas covering an area of 0.8 million hectares (ha). Head of Processing and Marketing of Products, South Sumatra Plantation Service, Rudi Arpian, said the incident...

Ministry of Industry Republic of Indonesia Supports National Natural Rubber Downstream Industry

The Ministry of Industry (Kemenperin) is committed to encouraging the rubber processing industry sector to be more productive and competitive and diversify products by spur the rubber product downstream program. This is supported by Indonesia's potential to become the second-largest natural rubber producer in the world. Head of the Industrial Research and Development Agency (BPPI) of the Ministry of Industry, Doddy Rahadi, said the national rubber processing industry sector's contribution...

This year, The Absorption of Natural Rubber is Projected to Only 550,000 Tons

The Indonesian Rubber Council (DEKARINDO) projects that this year's rubber absorption will only be around 550,000 tons, down about 22 percent compared to last year's absorption of 711,360 tons. In line with this projection, the Central Statistics Agency noted that until the third quarter of 2020, the rubber and plastic rubber goods industry's performance still contracted 9.61%. Chairman of the Indonesian Rubber Council (Dekarindo) Azis Pane said that currently, the...

Boost Purchase of Local Products, Option to Buy Natural Rubber for Asphalt Rises Again

The government will spur the purchase of domestic products amid the coronavirus pandemic (COVID-19). This is included in the policy formulated by the Committee for Handling COVID-19 and National Economic Recovery. Coordinating Minister for Economic Affairs Airlangga Hartarto as Chairman of the Committee after a closed meeting on Monday (27/7), said that one of the products the government will buy through the Ministry of Public Works and Public Housing (PUPR)...

GAPKINDO Emphasized that Sustainable Rubber must pay more attention on smallholder’s economy

The initiative of several tire factories in the world to make natural rubber sustainable through the Global Platform for Sustainable Natural Rubber was questioned by GAPKINDO (Rubber Association of Indonesia). In that letter to the Director of GPSNR, Stefano Safi, former director of the RSPO, GAPKINDO, stated how rubber's future can be sustainable amidst deteriorating economic conditions. Restrictions in many countries have affected tire manufacturers as well. They postponed the...

Legislator: Purchasing Smallholder Farmers’ Natural Rubber by the Ministry of Public Works and Housing Can Be An Alternative for Infrastructure Development Model

The member of House of Representatives for Commission V Muhammad Rifqinizami Karsayuda hopes the farmers' rubber purchasing program by the Ministry of Public Works and Public Housing (PUPR) can be a model for infrastructure development in the region. He suggested that the Ministry of PUPR give a role model for the purchase of rubber farmers to PUPR agencies at provincial and district/city levels throughout Indonesia. Legislators from the Indonesian Democratic...

Reprimand Concerning Natural Rubber Purchasing by Members of Parliament, Minister Basuki added Riau Into the List

Minister of Public Works and Housing (PUPR) Basuki Hadimuljono conveyed an apology to members of the House of Representatives. The latter protested because rubber produced by farmers in Riau Province was not purchased in the Covid-19 impact mitigation refocussing program at the Ministry of Public Works and Housing. In his presentation at a joint meeting of the House of Representatives Commission V on Monday (05/11/2020), Minister Basuki explained that the...

Nearly No Demand During Pandemic, Car Selling Down 90%

Covid-19 pandemic inflicted a significant blow to the automotive sector. Vehicle sales in April 2020 fell by 90.6% compared to the same month in the previous year due to weakening purchasing power and lack of demand. The Association of Indonesian for Automotive Industries (GAIKINDO) noted that car sales in April 2020 declined 90.6% to only 7,871 units compared to the same month in the previous year, which reached 84,056 units....

The Ministry of Public Works and Public Housing Will Buy Rp100 Billion Farmers’ Natural Rubber

The steps of the Ministry of Public Works and Public Housing made a policy to buy rubber farmers received appreciation from the House of Representatives. The Minister of Public Works and Public Housing Basuki Hadimuljono said that in refocusing activities to mitigate the impact of COVID-19, the PUPR Ministry also carried out rubber purchases directly from farmers with a budget allocation of Rp100 billion. In a Virtual Work Meeting with...

Category: National Policies