The implementation of 350,000 tons of export limitations or Agreed Export Tonnage Scheme (AETS) by International Tripartite Rubber Council (ITRC) is still not effective in rubber prices.
"AETS has not been effective against rubber prices," said Chairman of the Indonesian Rubber Council (Dekarindo), Azis Pane to KONTAN, Thursday (8/2).
The export cuts have not been effective because of the stocks owned by rubber country consumers are still abundant. Azis said China and Japan as the largest consumer of rubber still keep a large stock.
In addition, the implementation of AETS which followed only three countries ITRC namely Indonesia, Thailand, and Malaysia is still considered not able to control the price. Azis said Vietnam needs to be included even for countries starting rubber production such as Laos and Cambodia.
Currently ITRC only dominate the market by 71%. However, if developed by inviting Vietnam, Laos, and Cambodia then the market is controlled can reach 90%.
"We need to make ASEAN rubber consortium to be stronger in determining the price," explained Azis.
In addition to prices, the government's plan to increase exports by trade returns was welcomed. However, azis warned that the trade return must be considered in order to be profitable.
Previously Minister of Trade (Mendag), Enggartiasto Lukita mentioned one step to increase exports is to barter. Various superior commodities Indonesia will be offered and one of them is rubber.
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