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Joint decree aims to lift local rubber demand
Tapping in: Legimin, 38, who has made a living for decades as a worker with state-owned plantation company PTBN VII in Banyuasin, South Sumatra, checks the rubber taps
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Tapping in: Legimin, 38, who has made a living for decades as a worker with state-owned plantation company PTBN VII in Banyuasin, South Sumatra, checks the rubber taps. He is among 3.2 million Sumatrans who rely on the rubber industry for their living. (âKompas/Irene Sarwindaningrum) (âKompas/Irene Sarwindaningrum)
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span class="caption">Tapping in: Legimin, 38, who has made a living for decades as a worker with state-owned plantation company PTBN VII in Banyuasin, South Sumatra, checks the rubber taps. He is among 3.2 million Sumatrans who rely on the rubber industry for their living. ('Kompas/Irene Sarwindaningrum)
Five ministries are combining forces to jack up domestic consumption of natural rubber with the issue of a joint ministerial decree (SKB) on mandatory rubber utilization across several sectors, targeting an increase of at least 100,000 kilograms of natural rubber consumption this year.
The five ministries are the Trade Ministry, the Industry Ministry, the Finance Ministry, the Transportation Ministry and the Public Works and Public Housing Ministry.
"Previously, the rule has been issued as a presidential instruction. But it needs a quicker process, prompting us to change it to a joint ministerial decree from related ministries," said Trade Ministry agricultural and forestry export director Nurlaila Nur Muhammad as quoted by kompas.com on Thursday.
Under the new measure, rubber consumption will be directed to uses such as road pavements and dock fenders. Malaysia and Thailand have already mixed asphalt with rubber for paving roads, she explained.
Global demand for natural rubber has declined due to falling tire production amid decreasing automotive sales. The oil price slump worsened the situation as the price of synthetic rubber got cheaper.
Despite Indonesia's strategic position as one of the biggest producers of natural rubber, domestic consumption in the country is very low, absorbing only 18 percent of production. From last year's production of 3.2 million tons, domestic consumption came to only 600,000 kg.
"We must push rubber usage outside tire manufacturing. Beside asphalt-mix, rubber can be used in construction too, especially for cushions in bridges, railways and earthquake resistant houses," director of the Indonesian Rubber Research Institute Karyudi told thejakartapost.com. (ags)(+)
