Rubber plantations: Indonesia to establish cooperation with Thailand and Malaysia

Rubber plantations: Indonesia to establish cooperation with Thailand and Malaysia

 
 To control the price of rubber in the international market. The three countries agreed to form the International Tripartite Rubber Council (ITRC) is the organization that regulates the supply (supply) and demand (demand) that affect the world rubber price fluctuations, said Director General of Plantations Achmad Mangga Barani in Jakarta. Mangga Barani said Indonesia set a floor price or the lowest benchmark level of U.S. $ 1.6 per kilogram, and the tripartite agreement has been running since six years ago, while the benchmark price related evaluation per year. If the price falls below the level of U.S. $ 1.6 per kilogram (kg), the three countries will simultaneously reduce the production and supply to world markets, obviously Mangga Barani. He said if rubber prices below U.S. $ 1.6 per kg then there should be no country that sells. Current prices are in the range of U.S. $ 3.2 per kg, so the three countries are free to sell their products. Thus, Manggabarani said, when the price is below the benchmark, then the three countries joined the International Tripartite Rubber Council or the ITRC was not allowed to sell gum, and even take action to reducing the production of rubber. It was to keep the price of rubber in the international market is down, he said.

Data from the Directorate General of Plantations showed Indonesia rubber acreage to be the largest in the world with an area of ​​3.4 million hectares, followed by a 2.6 million hectare Thailand and Malaysia, 1.02 million hectares. But despite having the largest land, Indonesia rubber production totaled 2.4 million tons or under production of Thailand which reached 3.1 million tons, while the Malaysian rubber production reached 951 thousand tons.