Industry Minister: Development of Rubber Industry is a Must

Jakarta, InfoPublik – Industry Minister Airlangga Hartarto stated that downstream rubber industry is potential to develop as Indonesia is one of the main natural rubber producing countries with 3 million tons production per year. 

“National natural rubber production is potential to develop considering the 3.5 million hectares of land and support of  research and development programs conducted by government, educational institutions, and private parties,” said Airlangga in Jakarta, Tuesday (9/20).

He said that currently domestic natural rubber consumption for high value-added goods production is only around 20% of total national production. Thus, it needs improvement. 

Airlangga continued that the government considered it is necessary to conduct measures to increase domestic natural rubber consumption in order to boost added-value  to the national natural resources potential. 

“Domestic consumption level is still far below Malaysia, China, and India with consumption of over 40% of their products,” said the minister. 

Sea toll road as one of government’s recent policies provides good opportunities for rubber industry in supporting the port building requirements such as rubber dock fender, rubber floating fender, and rubber bumper building. 

As reported, the government plan to build 24 ports. Some of them are deep sea ports in Kuala Tanjung, Tanjung Priok, Tanjung Perak, Makassar dan Sorong. Four of them are already in progress. 

Meanwhile, Director of Downstream Chemical Industry of Industry Ministry Teddy C. Sianturi added that the effort to increase domestic natural rubber consumption needs to be supported by the capability of national industry to absorb natural rubber. 

“Current natural rubber consumption of 580 thousand tons per year, is still potential to be improved,” said Teddy. 

There are some necessary measures to be taken, such as intensification and extension of rubber product export, as well as creation of new industry linessuch as aircraft tire and aircraft retread industry which are potential to absorb natural rubber and generate foreign exchange. 

“We have also strengthened the structures of rubber product industriy, provided incentive for high-technology and export-oriented industries, as well as developed industrial area,” said he. 

Domestic natural rubber consumption improvement program needs to be supported by existing industry sustainability and development.  

“One of them is tire industry. One line of industry that absorbs 270 thousand tons or about 45 percent of the total of domestic natural rubber consumption,” he added. 

He also stated that tire is one of the leading export commodities which 70 percent of its total production are exported with total value of 1.5 billion US dollars per year. 

“Tire is a product which its market share is determined by market mechanism. Model variation, size and the applied technology determine the brand image in the community,” he concluded. (Translator: Erik Limantara)