TEMPO.CO, Jakarta - Indonesia, Thailand and Malaysia, as members of the International Tripartite Rubber Council (ITRC), have agreed to reduce rubber exports by 615,000 tons for the period of March 1-August 31, 2016.
“This is to boost natural rubber prices,” Karyanto Suprih, acting director of international trade at the Trade Ministry, said on Thursday, February 4, 2016.
Karyanto explained that the agreement was signed by Indonesian Trade Minister Thomas Trikasih Lembong, Thai Agriculture and Cooperation Minister Chatchai Sarikulya and Malaysian Plantation Minister Datuk Amar Douglas Unggah Embas. Earlier, the three countries were in talks to discuss the matter on January 19-22 and January 28-29.
Thailand expressed its commitment to reduce its rubber exports by 324,025 tons during the period agreed by the three countries. Indonesia had agreed to cut exports by 238,736 tons, and Malaysia would lower its rubber exports by 52,249 tons.
Indonesia’s natural rubber exports in the period of January-November 2015 stood at 2.4 million tons.
According to Karyanto, ITRC member countries produce 67 percent of the world’s rubber supplies. The market share would even be expanded to 76 percent when Vietnam joined the ITRC.
Karyanto explained that Vietnam’s status is ITRC’s strategic partner. However, Karyanto said that the ITRC would send a delegation to persuade the country joining the organization and cut its rubber exports to 85,000 tons.
Moenardji Soedargo, chairman of the Indonesian Rubber Producers Association, declared his support for the agreement.
“For the sake of the industry, rubber exports must be reduced,” he said.
PINGIT ARIA