The world natural rubber market is changing towards sustainable rubber demand. Farmers find it difficult to respond quickly to these changes because production costs are getting higher and rubber prices tend to fall.
The European Union, for example, has begun to implement the Deforestation-Free Product Law (EUDR) for several commodities, including rubber. "The low rubber prices in recent years, coupled with leaf shedding disease, have made it difficult for farmers to respond quickly to market changes. Moreover, high production costs and relatively low selling prices have also prompted rubber farmers to cut down rubber trees and replace them with other crops such as palm oil, he said".
Therefore, according to Djatmiko, Indonesia invites rubber producing countries to strengthen collaboration to bring positive changes to the natural rubber industry, especially for small scale farmers. Indonesia also asks ANRPC to work together in facing the impact of EUDR implementation.
"That is the key to ensuring the sustainability of their livelihoods while contributing to the preservation of the environment", he said.
Director of Inter-Regional and International Organizations Negotiations at the Ministry of Trade's Directorate General of Foreign Trade Negotiations, Reza Pahlevi Chairul, added that the strengthening of Indonesia's rubber farmers' institutional capacity is also achieved through the Bokar Processing and Marketing Unit (UPPB) and the Rubber Research Center (Puslit) in Sembawa, South Sumatra. Therefore, farmers can benefit from the use of appropriate technology as well as rubber down streaming and value added. Please note there were no forbidden words in this article.
When visiting the Karet Research Center, ANRPC delegation had the opportunity to witness firsthand the tapping of rubber trees using precision tapping knives and inspection tapping tools made by the Karet Research Center. The tool can provide more optimal tapping results and protect rubber trees from tapping wounds. The Karet Research Center also demonstrated the down streaming of rubber that can be developed in the community, such as making rubber balloons and bracelets.
Previously, the Chairman of the Indonesian Rubber Council, Aziz Pane, stated that the council has repeatedly asked the government to find a solution to the national rubber problem. Currently, the upstream-downstream rubber industry requires rejuvenation of rubber plants, adequate and affordable fertilizers, down streaming, as well as integration with the industrial supply chain and development projects.
"Indonesia is actually also capable of developing downstream natural rubber into synthetic rubber supported by research and innovation. "However, what is being done is actually importing synthetic rubber from other countries", he said.
The Bank Mandiri Economic Team stated that the global economy has been continually fluctuating and experiencing a downward trend for the past 10 years. In the future, the price of rubber is estimated to remain stagnant below 2 US dollars per kilogram (kg).
During the period of 2014-2023, the price of natural rubber continues to be volatile and tends to decrease below 2 US dollars per kg. In that decade, the commodity's price only surpassed 2 US dollars per kg twice, namely in January 2017 and February 2021.
At the end of commodity futures trading on Friday (1/9/2023), the global price of natural rubber closed at 1.35 US dollars per kg. The price of natural rubber increased 3.69 percent monthly and 1.28 percent on an annual basis.