RUBBER DOWNSTREAM INDUSTRY DEVELOPMENT IN INDONESIA: CURRENT STATUS, OPPORTUNITIES AND CHALLENGES potx

1 RUBBER DOWNSTREAM INDUSTRY DEVELOPMENT IN INDONESIA: CURRENT STATUS, OPPORTUNITIES AND CHALLENGES Nelly Rahman, Uhendi Haris Bogor Research Center for Rubber Technology Indonesian Rubber Research Institute 2 INTRODUCTION  Natural rubber is one of the great economic and social function for Indonesia  no doubt for environment conservation  Rubber export earning in 2008 accounted for US$ 6.057 billion or about 26% of estate crops export value.  Domestic consumption in Indonesia in 2008 was 414,000 tons accounted 15.0 % of the total production, (65 % was consumed by tyre industries).  Development of rubber downstream industry: increasing the added value, increase the consumption of natural rubber in the country, reducing imports of rubber goods, increase employment and foreign exchange savings. 3 CURRENT STATUS Indonesian rubber planted areas, production and consumption, 2001 – 2008 Item 2001 2002 2003 2004 2005 2006 2007 2008 Area (000) ha 3345 3318 3290 3262 3279 3309 3414 3433 Production (000) tons (share of the world) (%) 1607 (22.29) 1630 (22.83) 1792 (23.27) 2066 (23.97) 2271 (25.25) 2637 (27.20) 2755 (27.85) 2751 (27.87) Export (000) tons 1452.7 1497.3 1660.9 1874.3 2023.8 2286.0 2406.7 2295.5 Value (Million US$) 782.1 1038.9 1493.5 2180 2582.5 4320.7 4868.7 6056.6 Domestic consumption (000) tons 142 145 156 196 221 355 391 414 4 Annual grown of production in Indonesia 5 Rubber Plantation Area Percentage 6 INDONESIAN RUBBER PLANTED AREAS Smallholders Government-owned Private Year Area (000 ha) 7 Indonesia rubber export by type and grade (metric tons), 2002 – 2008 Type and Grade 2002 2003 2004 2005 2006 2007 2008 Latex Concentrate 12,526 12.526 11,755 4,014 8,334 7,610 8,547 (0.75%) (0.75%) (0.63%) (0.20%) (0.36%) (0.32%) (0.37%) Ribbed Smoked Sheet 46,165 46,165 145,895 334,125 325,393 275,497 137,755 (2.78%) (2.78%) (7.78%) (16.51%) (14.23%) (11.45%) (6.00%) Standard Indonesian Rubber (Technically Specified Rubber) 1,589,387 1,589,387 1,684,959 1,674,721 1,952,268 2,121,863 2,148,499 (95.69%) (95.69%) (89.90%) (82.75%) (85.40%) (88.16%) (93.60%) Other types of NR 12,842 12,842 31,652 10,921 3.0 1,786 706 (0.77%) (0.77%) (1.69%) (0.54%) (0.00%) (0.07%) (0.03%) TOTAL 1,660,920 1,660,920 1,874,261 2,023,781 2,285,967 2,406,756 2,295,459 8 Export performance of Indonesian natural rubber, 2003 – 2008 9 Clasification of rubber goods industry in Indonesia a. Tyre (bicycle, motorcycle, passenger cars, etc) b. Engineering rubber goods for industry and automotive (conveyor belts, automotive component, electronic component, bearing, etc) c. Latex goods (glove, condom, rubber thread, balloon, etc) d. General rubber goods (carpet, footwear, sports goods, etc) 10 Indonesian Rubber Goods Industries Industry Amount Motorcycle and car tyre industries 19 Bicycle tyre industries 7 Engineering rubber goods industries 56 Latex goods industries 51 General rubber goods industries 85 [...]... particularly in aliphatic hydrocarbon and cheap blends of aromatic and aliphatic, suitable for protective and maintenance coatings and for marine paints for brushing, rollers and spray application 16 Advantages •Easy to handel •No Pollution created by carbon black addition •Shorter mixing times •No bale cuttter needed 17 OPPORTUNITIES Business of natural rubber will continue to grow and sustainable because... and other industries in Indonesia is growing and is likely to continue to grow 21 OPPORTUNITIES   The price of natural rubber as a raw material is very fluctuate, on the other hand rubber goods prices are relatively stable and even tends to increase This opportunity is caught by PTPN by planning to build new industries or developing the existing rubber downstream industries to obtain added value or... export-import balance : increase the export value) Development of government-owned rubber downstream industry have two target programs: the development of new downstream industries (motorcycle tyre industry) and the revitalization of rubber downstream industries that already exist (gloves, rubber threads, conveyor belts) 23 CONCLUSION     Population growth and recovery of the Indonesia economy will... positive impact on business including business on rubber products Awareness of people on environment leads to increase in the use of natural-based products Positive prospect on rubber business has to be responded quickly in order to catch up the opportunity By improve the knowledge and skills of human resources in the technology, equipment and marketing network, a significant increase in contribution to... (However, in terms of each type of product, there are several rubber products so that the negative trade balance) Positive trade balance is always achieved from the tyre industry and other industries that require a lot of natural rubber rubber goods industry with the main raw material of synthetic rubber, Indonesia still needs a lot of imports, so that the negative trade balance, such as conveyor belts industry. .. MRB PTPN V and PTPN XIII share with private company PT Agrintara Product Rubber articles Master batch Rubber thread Resin Condom Disposable syringe Conveyor Belts 14 Rubber Thread is an intermediate product for garment and elastic industry which be used in combination/ covered with various types of yarn such as polyester, nylon, cotton, etc 15 Resiprene 35 is cyclized natural rubber soluble in odorless... downstream industries to obtain added value or higher profitability 22 CHALLENGES (For Government-owned Rubber Industry/ PTPN)    Business of government-owned plantation enterprise (PTPN) may be more developed and sustainable when integrating the upstream industry with downstream industries that have high added value Balance of exports and imports used to analyze the products to be developed prospectively... 13 Government-owned Rubber Downstream Industries Profile   10 government-owned companies and one a subsidiary company which runs business on rubber commodity: PTPN I, PTPN II, PTPN III, PTPN V, PTPN VII PTPN VIII PTPN IX, PTPN XII, PTPN XIII PTPN XIV, and PT Rajawali Nusantara Indonesia (RNI) PTPN III, PTPN V, PTPN IX, PTPN XIII, and PT RNI ever and is developing rubber goods industry Company Subsidiary... of factors including: the use of natural rubber in line with population growth and the raw materials are renewable Export of Indonesian Rubber Products (000 US$) Jan-Nov 2008 2.0% 3.8% 0.3% 6.3% 6.1% 17.9% 0.3% 63.4% Latex, pharmaceutical/hygienic goods Tyre and related products Tubes, pipes and hoses Conveyor belts V and other belts Automotive parts Other industrial rubber products General rubber products... rubber products 18 OPPORTUNITIES Indonesian Import Rubber Products Jan-Nov 2008 2% 2% 10% 15% 47% 16% 3% 5% Latex, pharmaceutical/hygienic goods Tyre and related products Tubes, pipes and hoses Conveyor belts V and other belts Automotive parts Other industrial rubber goods General rubber goods 19 OPPORTUNITIES     Export of rubber goods generally good growth in terms of export volume and value Export . 1 RUBBER DOWNSTREAM INDUSTRY DEVELOPMENT IN INDONESIA: CURRENT STATUS, OPPORTUNITIES AND CHALLENGES Nelly Rahman, Uhendi. industries).  Development of rubber downstream industry: increasing the added value, increase the consumption of natural rubber in the country, reducing