TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Indonesia, Malaysia Thailand agree to cut rubber exports

Starting April 1, Indonesia will cut rubber exports by 98,160 tons over the next four months.

Rachmadea Aisyah (The Jakarta Post)
Jakarta
Mon, April 1, 2019

Share This Article

Change Size

Indonesia, Malaysia Thailand agree to cut rubber exports The Trade Ministry’s head of trade assessment and development agency, Kasan Muhri, (right) and the Office of the Coordinating Economic Minister's international economic cooperation undersecretary, Rizal Affandi Lukman, speak at a press briefing at the Trade Ministry on April 1. (JP/Rachmadea Aisyah)

I

ndonesia, along with two other members of the International Tripartite Rubber Council (ITRC) -- Malaysia and Thailand – will cut the export of natural rubber in an attempt to stabilize the commodity’s global price.

Starting April 1, Indonesia will cut rubber exports by 98,160 tons over the next four months, while Malaysia will cut the export by 15,600 tons and Thailand, the largest rubber producer, will cut 126,240 tons starting May 20.

The Trade Ministry’s head of trade assessment and development agency, Kasan Muhri, said the move was part of the ITRC’s sixth Agreed Export Tonnage Scheme (AETS), which aimed for a combined reduction of rubber exports of 240,000 tons.

“We will continue to monitor rubber prices to ensure better profit for rubber farmers,” Kasan told a press briefing on Monday. “Meanwhile, exporters from the Indonesian Rubber Association (Gapkindo) will help oversee the export cuts.”

Global rubber price is steadying at around US$1.4 per kilogram after it dived to below $1.2 late last year. With the AETS, the price of rubber is expected to increase to more than $1.5 per kilogram, with the possibility of reaching $2 per kilogram, Kasan said.

The Office of the Coordinating Economic Minister’s international economic cooperation undersecretary, Rizal Affandi Lukman, said the government would expand the domestic market of natural rubber, such as by using it as mix material for road construction and  making retread tires.

“We believe domestic demand will be capable of absorbing the rubber,” Rizal said in a press briefing. (bbn)

 

{

Your Opinion Counts

Your thoughts matter - share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.