As an effort to support price hike, International Tripartite Rubber Council (ITRC) countries decreased raw rubber export for the next four months - Photo by Trade Ministry office
JAKARTA (TheInsiderStories) — As an effort to support price hike, Indonesia officially decreased its raw rubber export by 98,160 tons, for the next four months, said the government official today (01/04). The rubber export slash is also done along with Malaysia and Thailand as International Tripartite Rubber Council (ITRC) countries.
By this, Indonesia, Malaysia, and Thailand rubber export accumulatively will decrease by 240,000 tons. Malaysia agreed to reduce its export by 15,600 tons while Thailand cut the highest by 126,240 tons. The amount is divided proportionally based on production and export contribution of each countries.
“Indonesia and Malaysia starts doing this from April 1 to July 31. Meanwhile, Thailand will be from May 20 to September 20, because the country is now facing election,” said Trade Ministry’ Trade Assessment and Development Head Kasan Muhri.
The policy taken is stated in the 6th Agreed Export Tonnage Scheme (AETS) framework. But the implementation will be evaluated in every three months. Its agreed in the ITRC senior officials meeting on March 4-5, in Bangkok, Thailand.
ITRC countries expects to improve global rubber price. In November 2018, the rubber price was US$1.21 per kilo gram. According to Muhri, rubber price showed positive trend by increasing almost 5 percent during the ITRC meeting in December last year. And now, the price has been moving to around $1.4 per kilo gram.
Indonesia Trade Ministry followed the deal by issuing a decision to assign Indonesia Rubber Company Association as the implementors. Exporters who violate the price implementation will be imposed by sanction.
During 2013-2017, Indonesia’ rubber price fell by 9.04 percent. Such policy had been taken several times with no significant impact. But since 2017, Indonesia rubber exports were improving to 3.28 million tonnes valued $5.59 billion. Last year, the export value re-declined to $4.17 billion with 2.95 tons volume.
In January 2019, Indonesia’ raw rubber export was recorded at 210,370 tons. While, the export value was $273 million.
Written by Staff Editor, Email: theinsiderstories@gmail.com