Indonesia, Thailand and Malaysia to Set Up Rubber Joint Venture
25 July 2003 16:01 WIB
TEMPO Interactive, Jakarta:Indonesia, Thailand, and Malaysia have agreed to establish a joint venture company to manage quota and rubber purchasing so that prices rise to US$1 per kilo from the current US$0.61, according to Rini MS Suwandi, the Indonesia Minister of Industry and Trade. Speaking this morning (4/3) after opening trading activities at the Jakarta Stock Exchange (JSX) the minister said that the company would be set up before the end of March. “The company will need initial investment of US$225 million, and 20 percent of this—US$45 million--for the first stage. Malaysia has promised to provide US$12.5 million and Thailand US$25 million. There is a possibility the remainder will be provided by Indonesia,” said Rini. The minister went on to explain that the cooperation was needed in order to establish a rubber quota so that the price of rubber will increase. In December 2001, said Rini, the price of rubber price was US$0.45 per kilog, and in March 2002 this had risen to US$0.61 per kilog. “The price increased by 40 percent, because the quota was implemented,” she explained. (Wahyu Mulyono-Tempo News Room)
