The Indonesian government is asked to actively invite rubber exporting countries to reduce supply in the international market, due to persistently low rubber prices in the last three years.
Chairman of the Association of Indonesian Rubber Industry Association of South Sumatra Province Alex K Eddy explained that production restrictions are the only way for the short term, because the current supply in the world market really 'flood'.
"Someone wants to be a leader, and Indonesia can take over this, that is how to make countries like Malaysia and Thailand and new players to sit together to solve this problem," said Alex, as quoted by Antara, Thursday (16/11) .
Alex rate, low rubber prices most impact on Indonesia. Because 90 percent of rubber production is produced by smallholders. In addition, the ratio of sap production per hectare is very low compared to Malaysia, Thailand and Vietnam. In Indonesia in one hectare only get 1 ton of sap, while in Vietnam and Thailand has penetrated 2 tons.
"Surely when the price falls as it is today, that is 1.4 dollars per kilogram makes it no problem for Thailand and Vietnam, while for Indonesian farmers it becomes very heavy, because it only gets about Rp700.000 per month," he said.
The three rubber producing countries incorporated in the International Tripartite Rubber Council (ITRC), namely Indonesia, Malaysia and Thailand, have agreed to reduce supply to export markets in the Export Tonnage Scheme Agreement (AETS).
However, this measure is deemed ineffective if new rubber-producing countries (Laos, Vietnam, Myanmar and Cambodia) that are not members of the ITRC do not commit similar commitments.
Meanwhile, South Sumatra's rubber production target of 1.3 million tons in 2018 is certain to miss this year as per November only reached 1 million tons.
This target is not achieved no other impact of the price weakening at the level of farmers so a lot of land is just ignored.
"In 2016 it will fall even more, because the production has not reached 1 million tons, only about 900 thousand tons," he said, adding that at the beginning of the year there was a price increase.
Currently the price of rubber in international trade is only about 1.4 dollars per kilogram, or it is still far from expectations to touch 2 dollars per kg. Worse, farm-gate prices range from Rp5,000 - Rp7,000 per kilogram.
See also: Holding Plantation Income Sales Rp48, 7 Trillion in 2018
Anwar, one of Mesuji Raya rubber farmers, Ogan Komering Ilir District of South Sumatera, said that the price of rubber latex from the beginning of the year from Rp7.000,00 to only Rp6,800.00 (dry 100 percent) and Rp5,600.00 wet with a drying period of two days or 75 percent dry).
"At present, it is difficult for farmers to keep farming because the price is falling, and if the calculated income per month, around Rp700 thousand, this is not enough to meet family needs," he said.
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