Indonesia Conditions of Natural Rubber in Exporting Countries .1 Thailand
29 are found in North and South Sumatra, as well as Riau, Lampung and Java. Based
on FAO data, total production reached 3 million MET in 2012 with production targeted to reach 3.6 million MET by 2015.
Table 6 shows the increasing productivity trend of natural rubber in Indonesia from 2003 to 2012. Increased productivity of natural rubber is due to
the expansion of the overall planting area, as well as the rejuvenation of existing natural rubber plantations in Indonesia. The natural rubber plantation area within
Indonesia has grown by 23 percent over the last ten years. On the production side, the increase in Indonesias natural rubber production has increased very
significantly, 41 percent over the last ten years. However, in terms of productivity, natural rubber productivity in Indonesia is still relatively lower than other natural
rubber producing countries such as Thailand and Malaysia.
According to the Rubber Association of Indonesia GAPKINDO, plantations in Indonesia produce an average of 880 kg–1,000 kg per hectare,
compared with up to 1,500 kg for Malaysia and Thailand. Productivity per hectare is closely related to the age of the trees, as well as the quality of the clone
seedlings, with both factors leaving Indonesia at a disadvantage. With most plantations being on family operated, small hold plots that lack the investment
capacity to replace older trees, the average age of the trees remains high and therefore less productive. Low quality seedlings are also being used at an
estimated 40 of all small hold rubber plantations, further resulting in lower quality rubber that is sold at a lower price.
Table 6 Area Harvested, Production and Productivity of Natural Rubber in
Indonesia, 2003 - 2012 Year
Area Harvested Hectare
Production Quantity Tonnes
Productivity TonnesHectare
2003
2675060 1792350
0.670
2004
2675060 2065820
0.772
2005
3279391 2270891
0.692
2006
2725858 2637231
0.967
2007
2775546 2755172
0.993
2008
3424217 2751286
0.803
2009
3435270 2440347
0.710
2010
3445121 2734900
0.794
2011
3456100 2990200
0.865
2012
3484100 3040400
0.873 Source: Author’s elaboration with data from FAO, 2013
Rubber was one of the key focus crops under the Indonesian Ministry of
Agriculture’s revitalization program introduced in 2007. The program aims to address the issues of low quality plants, as well as to expand the land area under
cultivation by up to 1.3 million hectares. Farmers also gained access to loans of up to 40 million rupiah per hectare of land to encourage replanting. According to
GAPKINDO, by the end of 2010, this program had achieved limited impact as only 6,000 new hectares had undergone rejuvenation. The Indonesian government
decided to extend this project through 2014, with the intention of seeing up to
30 400,000 hectares of plantations undergoing replacement with new trees, as well as
extensive education of farmers in regards to new technology and tapping techniques that will boost output. However, in order to make the government’s
financing programs completely effective, greater collaboration is required. The private sector along with the rubber producers needs to take advantage of the
research that is being undertaken by institutions such as the Bogor Research Station for Rubber Technology to improve output and competitiveness Statistics
Indonesia, 2013.
The potential for the natural rubber industry is positive, with the days of low priced natural rubber seeming unlikely to return. Demand from China and
India will continue to grow as the ranks of car owners continue to swell and existing cars require tire replacements. Indonesia therefore hold the potential to
eventually becoming the largest rubber producer in the worlds should the key issues of productivity and land fragmentation be addressed. Moving up to higher
value rubber will increase returns and allow smallholder farmers to reinvest in new technology in an effort to further increase output in the future as global
demand continues unabated.