Prices of Export Commodities Will Still be Under Pressure in 2016

TEMPO.CO, Jakarta - Chief of the Indonesian Farmers Association Henry Saragih predicted that in 2019, prices of several Indonesian export commodities in the international market would be difficult to rise.

In fact, he said that Indonesia still relies on a number of export commodities such as coffee, palm oil, and rubber.

"At the end of 2015, the prices of rubber and palm oil continued to fall,” Henry said on Friday.

According to Henry, prices on prices of those commodities have made farmers suffer from financial losses because the increase export volumes that are not followed by the increase in prices would in fact make the farmers suffer.

"Our farmers are not in an advantageous position. Actually, they are now under pressure,” he added.

Henry added that pressure on prices of rubber would continue in 2016 because the size of rubber plantations in Indonesia is smaller than the size of plantations by in neighboring countries.

According to him, Cambodia, Myanmar and Laos are currently making innovations and planting hundreds hectares of land with rubber plants.

As for palm oil, Henry said that there would be a tough competition in 2016 because many countries have also planted palm oil.

One of the solutions offered by Henry is to focus on domestic production and to be self-sufficient.

"We must not use imported seeds," he said.

MAWARDAH NUR HANIFIYANI