Increase Tire Industry’s Rubber Absorption

KOMPAS/P RADITYA MAHENDRA YASA

A worker installs an infusion tool in a rubber tree trunk to stimulate sap production in Singorojo district, Kendal regency, Central Java, on Friday (9/9/2018). Data from Statistics Indonesia (BPS) shows that 775,339 tons of rubber and rubber products were exported from January to March in 2011. This was a 17.2% increase from the 661,559 tons exported in the corresponding period in 2010.

JAKARTA, KOMPAS — Indonesia, Thailand and Malaysia have agreed to increase the absorption of rubber in their domestic markets. In this case, Indonesia can optimize the tire industry capacity.

The Indonesian tire industry is expected to highly increase rubber absorption. Nevertheless, production capacity of the tire industry still needs to be optimized.