Indonesia is The Second Top Rubber Producers in the world
Rubber, known for its elastic quality, is a commodity that is used in many products and applications around the globe (from industrial to household products). There are two types of rubber, to wit natural rubber and synthetic rubber. Natural rubber is made from the juice (latex) of the rubber tree, whereas the synthetic type is made from petroleum. Both types are interchangeable and as such influence each other's demand; when the price of petroleum rises, demand for natural rubber will increase. But when supply disruptions of natural rubber cause its price to rise, then the market tends to turn to synthetic rubber. This section discusses Indonesia's natural rubber sector. Indonesia is one of the largest producers and exporters of natural rubber.
Top Five Natural Rubber Producers 2014:
1. Thailand 4,070,000
2. Indonesia 3,200,000
3. Malaysia 1,043,000
4. Vietnam 1,043,000
5. India 849,000
NATURAL RUBBER IN INDONESIA
Production and Export of Indonesian Rubber
As the second-largest rubber producer, Indonesia supplies a substantial amount of rubber to the global market. Since the 1980s, the Indonesian rubber industry has been experiencing steady production growth. Most of the country's rubber output - approximately 80 percent - is produced by smallholder farmers. Government and private estates thus play a minor role in the domestic rubber industry.
Most of Indonesia's rubber production stems from the provinces:
1. South Sumatra
2. North Sumatra
5. West Kalimantan
The total size of Indonesia's rubber plantation area has risen steadily during the last decade. In 2014, the country's rubber plantations covered a total of 3.56 million hectares. As prospects of the rubber industry are positive, there has been a shift away from commodities such as cocoa, coffee and tea, in favour of the establishment of palm oil and rubber plantations. Smallholder rubber estates have increased, while government and private rubber estates have shown a slight decrease, probably due to a shift in focus to palm oil.
Around 85 percent of Indonesia's rubber production is exported. Almost half of export is shipped to other Asian countries, followed by North America and Europe. The top five Indonesian rubber importing countries are the USA, China, Japan, Singapore and Brazil. Domestic rubber consumption is mostly absorbed by Indonesia's manufacturing industries (in particular the automotive sector).