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Profile of rubber plantations in Indonesia.

Current Issues

The government is set to see Indonesia becomes the world's largest producer of rubber in 2011. Indonesia is already the largest in plantation area with rubber plantations totaling 3.4 million hectares in 2009 as against Thailand's 2.67 million hectares and Malaysia's 1.02 million hectares.

However, the country is only the second largest in production with production totaling 2.4 million tons in 2009 as against Thailand's 3.1 million tons t per year. Malaysia came third with production of 951,000 tons.

Indonesia is lower in productivity as many of the country's rubber trees have been too old and the plantations are not well tended. The government, therefore, has planned replanting in 50,000 hectares of plantations in a number of production centers. Replanting will be launched in South Sumatra, Bengkulu, and Jambi. The replanting is aimed at improving the productivity. The productivity is to be increased from 901 kilograms per hectare per year to 1,500 kilograms, per hectare per year.

* Rubber price hit record level

Dry rubber price in international market in April 2010 hit a record high at US$3.33 per kilogram in a number of decades. In 2000, rubber price was only US$0.5/kg; the price of natural rubber fell more than 66% to 110 US cents per kilogram in July and December 2008.

In April, 2010 in Medan, the price of dry rubber of the TSR 20 type for May delivery was recorded at US$ 3.33 per kg and US$ 3.32 per kg for June delivery. The price of the RSS 3 type was US$ 3.99 per kg in May and US$3.86 per kg in June.

The price of rubber continued to scale up triggered by the soaring oil price amid speculation that the US economy would grow.

* Exports up but supply limited

In the first quarter of 2010, exports of rubber and tuber goods shot up. In the first quarter of 2009, exports were valued only at US$ 934.7 million, but in the same period in 2010, the exports value shot up to US$ 1,963.5 million. Rubber price that continues to climb resulted in an increase in Indonesia's earning from natural rubber exports.

Scarcity in supply caused difficulty in meet demands for exports which have continued to increase in the past two years resulted in scarcity.

Revitalization of the country's rubber plantations has come too late to meet the market demand at present.

Industrial structure

Plantations by ownership (Smallholders, State Comp, Private Comp)

Rubber plantations in Indonesia are dominated by smallholders. For over 15 years (1994-2009), the country's rubber plantations have virtually been unchanged in size. The plantation areas even shrank during the 2007-2004 periods.

When the rubber prices fell in the world market late the 1990s, many private companies converted their rubber plantations into oil palm plantations, which were considered more profitable. Astra Argo Lestari and the Bakrie group, for example, have grown oil palm trees in their rubber plantations or sold their rubber plantations to concentrate on expansion of oil palm plantations. However, in the past two years they begun to set eye on rubber plantations when the price of rubber climbed.

In 2009, Indonesia still had 3.4 million hectares of rubber plantations but with lower productivity compared with Thailand's rubber plantations of 2.67 million hectares.

Locations

Sumatra has the largest plantations of rubber plantations with 2.4 million hectares or 70% of the total area of rubber plantations in Indonesia. The largest rubber plantation by province is in South Sumatra totaling 672,000 hectares in 2009, followed by rubber plantations in North Sumatra, Riau and Jambi. Other larges plantations are found in West Kalimantan and Central Kalimantan, and in Central Java and West Java.

Unlike in Sumatra and Kalimantan, rubber plantations in Java are dominated by state plantation companies and private plantation companies. Smallholders account for only a small part of rubber plantations in Java. Sumatra and Kalimantan the plantations are dominated by smallholders.

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Condition of plants

When the price of rubber fell such as in the 1997-2003 period. Many plantations were left lying idle untended for year and some of them were converted into more profitable plantations such as oil palm plantations. The rubber price began to scale up in 2008 to follow the soaring oil prices.

At that time, however many of the plantations had been damaged. Rubber plantations in Indonesia. Therefore were much less productive than those of Malaysia and Thailand two other major rubber producing countries.

Improving productivity. Therefore is the main target if the country wants to become the world's largest producer of natural rubber. The country has the largest plantations much larger than Thailand's plantations but Thailand is the largest producer.

The agriculture ministry said rubber trees in around 400.000 hectares of plantations have been too old and damaged and need replanting. Director General of Plantations Achmad Mangga Barani said the country's rubber plantations have low productivity with production averaging 901 kg/hectare. The country's production of rubber totals only 2.4 million tons per year. As against Thailand's 3.1 million tons.

Replanting. Therefore is needed to improve the productivity of the rubber plantations. The government has set a replanting target over 400.000 hectares.

Development of the country rubber plantations is to be launched through the Plantation Revitalization Program including expansion. Replanting and rehabilitations of plantations. The program will be supported with subsidized investment credits.

The government will also provide support through non revitalization program in the form of fertilizer and procurement of seedlings for replanting.

The government is to launch revitalization program in rubber plantations covering 10.000 hectares of the plantations in 2010. Up from 4.631 hectares in 2009 and expansion through non revitalization program to cover 18.688 hectares up from 11.667 hectares in 2009.

State rubber plantations

Rubber plantations owned by state companies and private companies are generally well tended

Among the state plantation companies. PT PN III in North Sumatra has the largest rubber plantations of 45.327 hectares. PTPN III also has rubber plasma plantations totaling 9.150.8 hectares cultivated by local farmers. In addition, PTPN III has oil palm and cacao plantations. Altogether its plantations total 166.000 hectares.

PT PN VII has 34.439 hectares of rubber plantations in South Sumatra and Lampung or the second largest. But if combined with its plasma plantations of 31.467 hectares. It has the largest rubber plantations totaling 65.800 hectares.

Rubber plantations owned by private companies

The areas of rubber plantations owned by private companies have been reduced in size over the past decade as many of the plantations have been used to grow oil palm trees. Among the companies maintaining its rubber plantations is PT Perusahaan Perkebunan London Sumatera Indonesia Tbk and PT Socfin.

PT Perusahaan Perkebunan London Sumatera Indonesia Tbk

PT Perusahaan Plantations London Sumatra Indonesia Tbk has one of the largest rubber plantations among private companies. This company was established more than century ago that was in 1906 by Harrisons & Crossfield Plc. a London-based plantation and trading company. Perkebunan London-Sumatera. Better known as "Lonsum". Expanded to become one of the world's leading plantation companies with 100.000 hectares of plantations of oil palm, Rubber, Tea and cacao in four Indonesia's main islands.

After the Indonesian independence Lonsum focused more on expanding its rubber plantations and in 1980 it began to concentrate more on oil palm plantations. At the end of this decade palm oil because it's main commodity instead of rubber.

Lonsum has 38 nucleus plantations and 14 plasma plantations in Sumatra. Java. Kalimantan and Sulawesi. It plantation business include plant breeding. Planting. Harvesting processing and sales of commodities that include palm oil. Rubber. Cacao and tea. The company has 20 processing factories in Sumatra. Java and Sulawesi.

In 1994. Harrisons & Crossfield sold its entire Lonsum assets to PT Pan London Sumatra Plantations (PPLS). This later listed Lonsum on the Jakarta Stock Exchange and Surabaya Stock Exchange in 1996. In October 2007. Indofood Agri Resources Ltd. a subsidiary of the food giant PT Indofood Sukses Makmur Tbk. became the majority shareholder of the company through PT Salim Ivomas Pratama.

Toward the end of December 2009. Its nucleus estates exceeded 100.000 hectares with oil palm plantations making up 70%. Rubber plantations 17% and other plantations making up the rest. Currently Lonsum had rubber plantations totaling 17.394 hectares in North Sumatra. South Sumatra and South Sulawesi. PT Lonsum also cooperates with local farmer in 36.209 hectares of plasma plantations including oil palm plantations making up 89% and rubber plantations 11%.

Lonsum has seven factories producing sheet rubber and crumb rubber for both domestic sales and export. In 2009. Sold 22.110 tons of rubber down slightly from 22.870 tons in 2008.

PT SOCFIN

PT. Socfin Indonesia is a foreign investment (PMA) company with plantations in North Sumatra and Nanggroe Aceh Darussalam.

PT. Socfin Indonesia was established December 1930 with the name of Socfin Medan S.A. In 1965. PT. Socfin Indonesia was put under the supervision of the government based on a presidential decision No. 6 Year 1965.

In 1968. PT. Socfin Indonesia became a joint venture company between Plantation Nord Sumatra S.A.--Belgium (the owner of Socfin) and the Indonesian government with the name of PT. Socfin Indonesia (Socfindo). Based on the foreign investment law No. 01/1967 with 60% of the shares held by Plantation Nord Sumatra and 40% by the government of Indonesia.

On 13 December 2001. Under privatization program 90% of Socfindo is owned by Plantation Nord Sumatra with 10% retained by the government.

PT. Socfin Indonesia has 5 rubber plantations totaling 10.000 hectares. Located in North Sumatra. It has secured the certificates of ISO 9001-2008. ISO 14001-2007 and OHSAS 18000 in recognition of the quality of its products.

PT. Socfin Indonesia planted high yield clone such as PB 260. PB 340. PB 217. And RRIM 712.

The use of the clones has contributed to increasing the productivity and production of its rubber plantations. The clones are more resistant to diseases and change in climate.

Bakrie Sumatera Plantation

PT Bakrie Sumatera Plantation Tbk (UNSP). This has rubber and oil palm plantations. Was established in 1911 as a rubber plantation company with the name of NV Hollandsch-Amerikanse Plantege Maatschpij. By the Dutch colonial administration. It was acquired by Uniroyal Inc. In 1957 and it was renamed United States Rubber Sumatra Plantation (USRSP).

In 1965 it was nationalized. But later it was taken over by Uniroyal and its name was changed with PT Uniroyal Sumatra Plantations (UnSp). In 1986. PT Bakrie and Brother acquired the majority share of the company and its name was changed with PT Bakrie Sumatra Plantation and it began to start business in oil palm plantations.

The company has plantations in North Sumatra. Riau. West Sumatra. Jambi. South Sumatra. Batam and Central Kalimantan. Its cultivated plantations totaled 79.338 hectares. Its largest plantations are in North Sumatra totaling 24.600 hectares. Including rubber plantations making up 75% and oil palm plantation making up the rest.

Rubber plantations account for 24% or 18.8.000 hectares of its cultivated plantations.

The company also cooperates with local farmers under nucleus smallholder scheme with 14.500 hectares of plasma plantations.

Rubber Production

In the period of 1994-2003. The country's rubber production was almost stagnant. Increase was recorded only since 2004 when production reached 2.06 million tons from 1.79 million tons in 2003. The production rose again to reach 3.04 million tons in 2009.

Increase was recorded mainly by smallholder plantations. The increase in price encouraged the farmers to boost production through productivity improvement or expansion of plantations. Meanwhile. The plantations owned by the state and private companies recorded no significant change was they already reach their maximum productivity with no expansion of plantations.

Production by locations and plantation owners

Sumatra accounted for the largest part or 72% or 2.23 million tons of country's total rubber production in 2009. By province South Sumatra relegated North Sumatra as the largest producer. In 2009. South Sumatra produced 593.000 tons. The second largest producer is North Sumatra. Followed by Riau and Jambi.

Productivity

Productivity of the country's rubber plantations is lower than those of Thailand and Malaysia. The productivity of the country's rubber plantations, based on the total plantation areas, averages only 812 kg per hectare per year, but based on the productive areas, the productivity is around 954 kg per hectare per year.

With good maintenance and using high quality clones the production of the country rubber plantations could reach 1,500-2,000 kg per hectare per year.

Smallholder plantations are lower in productivity compared with those of state plantation companies (PBN) and private plantation companies (PBS). Averagely, smallholder rubber plantations have a productivity of around 954 kg/hectare as against PBN's 1409 kg/hectare and PBS' 1666 kg/hectare. Only in Sulawesi, smallholder plantations have a fairly high productivity exceeding PBN and PBS merely as the three in the plantations owned by both PBN and PBS have not reach the productive age

Plantation director general Achmad Mangga Barani said smallholder plantations need replanting to improve their productivity outside the program of revitalization.

The development target for non-revitalization rubber plantations in 2010 is set at 8,688 hectares in 51 regencies in 16 provinces. Implementation in 2009 reached 7,035 hectares in 43 regencies in 13 provinces.

The development program for non-revitalization rubber plantations is financed subsidy of Rp20 billion per hectare from state budget as much or Rp173.7 billion for the 8,688 hectare target in 2010. Development of non-revitalization smallholder plantation will add to the country's total rubber plantations of 2.4 million hectares at present.

Types of Natural Rubber

Natural rubber commodities include latex, block rubber, sheet and crumb rubber--all as basic materials in downstream industry.

Conventional natural rubber

The processed product of natural rubber is known in trade as conventional natural rubber that includes sheet and crepe. The types of natural rubber categorized as conventional include Ribbed smoked sheet (RSS). White crepe and pale crepe are the crepe types in white color either thin or thick.

Thick Latex

Thick latex enters the market after the process of creaming and centrifugation to turn out creamed latex and centrifuged latex. Generally thick latex is used only for thin rubber materials with high quality such as medical rubber hand gloves.

Block Rubber

Block rubber is crumb rubber after being dried and milled into bales in certain sizes. Some bock rubber has light color but each category has different colors.

Rubber with technical specifications (Crumb Rubber)

Rubber with technical specifications or crumb rubber is specially processed that the quality is guaranteed. The quality is determined based on technical characteristics. The quality and category of crumb rubber are not base don visual evaluation such as in the case of sheet, crepe and thick latex.

Production of crumb rubber

The types of rubber products produced and exported by Indonesia are not many and dominated by primary products (raw material) and semi finished products. Indonesia is still behind Thailand and Malaysia, in developing rubber products.

Most of the country's rubber production is processed into crumb rubber with codification of "Standard Indonesian Rubber' (SIR). Others are RSS and latex.

Currently, the country has 23 units of latex-based rubber processing facilities with a total capacity of 144,520 ton/year, and 87 units of crumb rubber plants with a capacity of 1,957,400 ton/year. The capacity of crumb rubber processing facilities is enough to process the basic material produced in the country.

The agriculture ministry recommended temporarily stop issuing license for new crumb rubber plant as the country still has capacity, which is larger than the country's rubber production.

Indonesia's rubber production per year is around 2.6 million to 2.7 million tons. Around 15% or more than 300,000 tons of the total production is for domestic consumption mainly tire industry. The rest are exported.

Exports

The country exports most of its rubber production. In 2003, around 2.3 million tons of the total productions of 2.9 million ton were exported.

Exports have fluctuated in volume from 1999 to 2008 but tended to increase in the latter four years.

Prices predicted to remain high

The price of rubber in the world market hit a 20-month record in April. 2010 on short fall in supply. The price is predicted to rise still as supply is expected to remain scarce with protracted dry season.

Encouraging trend of the economy especially the US economy will also push up demand for natural rubber from tire makers.

In the past two years. Rubber producers gained form the strong rubber market after years of being in the doldrums. In 2004 the rubber prices averaged Rp 7.200 kilograms. The price surged to Rp13.500 per kilogram in 2005. In September 2006, the export price averaged Rp17.550 per kilogram and the prices received by farmers averaged Rp14.500 per kilogram for raw rubber.

The price of natural rubber once dropped by more than 66% to 110 US cents per kilogram in July and December 2008. The decline followed weak demand amid the global economic slowdown. The price shot up to 287 cents per kg in December 2009.

The North Sumatra's Association of rubber companies (Gapkindo) said in April 2010. The price of dry rubber of the TSR 20 type was US$3.33 per kg for May's delivery. down to US$ 3.32 per kg for June delivery. The price of RSS 3 was US$3.99 per kg for May delivery and US$3.86 per kg for June delivery.

The price of natural rubber is considered too high. It is the highest since the World War II. Producers of natural rubber said if the price remained high tire factories may choose to use synthetic rubber. threatening the survival of the natural rubber industry.

The price. However. Is expected to remain high with the improved condition of the world's economy.

Three countries to control the price.

The high price of natural rubber since 2003 is determined partly by the success of three world's largest producers Thailand. Indonesia and Malaysia--in establishing cartel to control production and exports.

The tripartite cooperation succeeded in shoring up the price of natural rubber in previous years. Toward the end of 2001 (before the signing of the Bali Declaration 2001) the price of natural rubber was only around 46 US cents to 52 cents/kg. After the implementation of AETS (Agreed Export Tonnage Scheme) and SMS (Supply Management Scheme). The price was picking up. In January 2002, the price rose to 53.88 cents/kg and in August 2003 it was 83.06 cents/kg.

After the signing of a MOU on 8 August 2002, the price scaled up again to reach 89.55 cent per kg in September 2002. In March 2003, the price peaked at 96.50 cents/kg after the 1997 crisis. Before falling to 81 cents/kg in April. In May that year it rose again to 82 cents/kg.

Since 2004, the price began to leapfrog to follow the soaring prices of oil that made synthetic rubber too expensive and less competitive facing natural rubber.

The three countries Indonesia. Malaysia. And Thailand agreed to continue cooperation in controlling the price of natural rubber in the world market.

In a meeting early 2010, the three countries grouped in the Association of Natural Rubber Producing Countries (ANRPC) agreed to keep the price in international market at US$ 2 to US$ 3 per kilogram (kg). In order to maintain the price level. The three countries arrange supply management.

The International Tripartite Rubber Council (ITRC) meeting also discussed proposal of Vietnam to join the ITCR. Currently the three countries of the ANRPC account for 70% of the world supply of natural rubber. Indonesia alone accounts for 25%-27%. If Vietnam joins. The organization would control 90%-95% of the world market of natural rubber.

Investment in rubber plantation small

Difficulty in securing cheap fund is still the main problem hampering expansion of the country's rubber plantation. Low and sharp fluctuations of rubber prices in the past discouraged long term investment in the sector.

In a bid to cope with the problem, the government launched a program to revitalize the plantation sector including in oil palm, cacao and rubber plantations especially smallholder plantations.

However, after the launch of the program in 2007, realization is far from expectation especially in the rubber sector. Rubber plantations had only a share of Rp 146.34 billion of the total spending of Rp 5.56 trillion on the program until 2009. The bulk of the fund or Rp 5.39 trillion went to the oil palm sector with the cacao plantation sector having the smallest share of Rp 35.14 billion.

The implementation of the program covered a total area of 146,092 hectares. Oil palm plantations totaled 140,488 hectares, rubber plantations 4,147 hectares and cacao plantations 1,457 hectares.

The realization was still far way from the target of 2 million hectares with credit allocation of Rp 76 trillion until the end of 2010.

Under the program, which is to end this year, the government hopes to see an expansion of 1.37 million hectares of oil palm plantations and replanting over 125,000 hectares. Expansion of rubber plantation is projected at 50,000 hectares with replanting covering 250,000 hectares. Expansion target for cacao plantations is 110,000 hectares with replanting to cover 90,000 hectares and rehabilitation 36,000 hectares.

In 2010, the government sets revitalization target at 364,100 hectares including expansion around 225,500 hectares, replanting 127,600 hectares and rehabilitation 11,000 hectares.

Banks feel safer to deal with farmers in oil palm sector than with those in rubber or cacao plantations as oil palm farmers have their guarantors in plantation companies as the nucleus companies. There is no such cooperation in the rubber and cacao plantations. Therefore, the bulk of the bank credits go to the oil palm plantation sector.

Under the program of plantation revitalization, the government provides subsidy on credit interest. The interest rate is 6% on rubber farmers' credits and 7% on the credits for oil palm and cacao farmers. The government pays the difference with him rate set by banks. A number of major banks have pledged credits for the program including Bank BRI, Bank Mandiri, Bank Bukopin, Bank Agro, Bank Niaga, Bank BCA, and banks owned by regional administrations such as BPD Sumbar, BPD Sumsel, BPD Sumut, BPD Riau, BPD Papua and BPD Kaltim.

The year 2010 is the last year for the program, but there has not been much headway made in the implementation of the program. In addition, smallholder plantations have yet to complete administrative matters. Many smallholder plantations have no certificate which is needed as one of the requirements set by banks as collateral for credits.

New License for Crumb Rubber Industry Stopped Temporarily

The association of rubber companies (Gapkindo) has asked the government to stop issuing new license for crumb rubber industry as the capacity of 1 million tons a year the existing factories has exceeded the country's rubber production. The proposal was supported by the agriculture ministry that the country's crumb rubber industry already has idle capacity.

In addition, the government has no intention of expanding the country's tuber plantation in line with the policy agreed by the three countries--Indonesia, Thailand and Malaysia which are group in the International Tripartite Rubber Council (ITRC) to control the price of that commodity in international markets. The government wants only replanting to improve the productivity. The three countries agreed that if the price fell below USS 1.6 per kg, they would not release their stocks to the market to prop up the price.

In 2008, the price of natural rubber was around US$1.36 per kg. The three countries, therefore, formed ITRC and agreed to cut production by at least 250,000 tons each in 2009. Thailand and Malaysia were required to cut production by 200,000 tons and Indonesia 50,000 tons. The policy succeeded in pushing up the price to US$ 2.8 per kg in December that year.

Prospects of Rubber Agribusiness

The greater awareness of the people of the importance of friendly environment would contribute to better prospects of natural rubber. Tire factories would be led to producing green tires that have higher content of natural rubber that synthetic rubber from oil.

Polymer factories are also expected to use more natural rubber as their basic material. This will help reduce the exploitation of non-renewable natural resources of oil and coal as the basic material for synthetic rubber. Demand for natural rubber, therefore, is expected to be higher in the future.

Indonesia wants to regain position as world's largest producer

Indonesia's production of rubber has continued to scale up since 2004 when the price of that commodity began to rise. Farmers are encouraged to tend their long abandoned rubber plantations. Meanwhile, Malaysia's production is expected to scale down as more rubber plantations have been converted into oil palm plantations.

Thailand is also expected to face difficulty in expanding its rubber plantations on limited availability of suitable land.

Indonesia faces no such problem. The country already has large plantations. It needs only to improve the productivity through replanting in old and damaged plantations.

Conclusion

* The prospects of business in natural rubber are encouraging with the greater awareness of the people of the importance of maintaining healthy environment. Tire factories are expected to use more natural rubber as the basic material to produce what is called green tire.

* Since 2004, the price of natural rubber in the world market has continued to scale up. A decline was recorded only in 2008 as a result of the global economic slowdown and financial crisis. The price, however, remained high at around US$ 3 per kg

* With the oil price soaring and is expected to remain high at around US$75 per barrel, the price of natural rubber is expected to remain high that the prospects of long term investment in rubber plantations at present are more encouraging.

* Indonesia has the opportunity become the world's largest producer of natural rubber again because it already has the largest plantation areas. It only needs to improve its productivity through replanting.

* With the price remaining high the farmers are encouraged to grow rubber and seek to boost their productivity.

* The government has launched what is called program of revitalization in the plantation sector including rubber plantations. However, there has not been much headway made in the implementation of the program, which already started in 2007. There are a number of factors coming in the way including administrative matter like land certificate. Many plantations owned by the farmers have no certificate that could be use as collateral for bank loan. There is no company to serve as nucleus estate such as in oil palm plantations to provide guarantee for bank loans.

* The government has also launched a program of non revitalization in the rubber plantation sector using fund of state budget for development of smallholder rubber plantations. The amount, however, is too small and would not be enough to meet the requirement.

* The government has no plan for expansion of the country's rubber plantations and issue license for new crumb rubber factories as the capacity of the existing factories already exceeded the country's rubber production. New investment, therefore, is encouraged more in the downstream sector to process more rubber in the country.
Table - 1

Rubber plantations all over Indonesia, 1994 -2010

Year Areas (Hectares)

 PR PBN PBS Total

1994 2.892.994 280.543 298.842 3.472.379
1995 2.952.684 248.393 294.824 3.495.901
1996 2.978.507 246.246 293.688 3.518.441
1997 2.957.538 226.839 290.025 3.474.402
1998 3.082.330 229.809 295.156 3.607.295
1999 3.086.543 218.344 290.173 3.595.060
2000 2.882.795 212.617 277.009 3.372.421
2001 2.838.421 221.876 284.470 3.344.767
2002 2.825.476 221.228 271.655 3.318.359
2003 2.772.490 241.625 275.997 3.290.112
2004 2.747.899 239.118 275.250 3.262.267
2005 2.767.021 237.612 274.758 3.279.391
2006 2.832.982 238.003 275.442 3.346.427
2007 2.899.679 238.246 275.792 3.413.717
2008 2.910.208 238.210 275.799 3.424.217
2009 *) 2.913.960 238.161 275.860 3.427.981
2010 **) 2.936.181 235.922 273.214 3.445.317

Note:

PR: Smallholder plantations

PBN: State plantations, PBS : Private plantation companies

Source: Statistics of the plantation directorate general

Table - 2

Areas of rubber plantations in Indonesia by provinces
And owners, 2009

No. Province PR (Ha) PBN (Ha)

1 Nanggroe Aceh Darussalam 74.480 31.048
2 North Sumatra 306.011 68.295
3 West Sumatra 127.557 0
4 Riau 355.576 12.735
5 Riau Islands 29.300 0
6 Jambi 444.662 0
7 South Sumatra 627.999 22.422
8 Kep. Bangka Belitung 30.926 0
9 Bengkulu 62.506 6.874
10 Lampung 53.291 18.603

 SUMATRA 2.112.308 159.977

11 DKI Jakarta 0 0
12 West Java 7.078 25.003
13 Banten 16.312 2.067
14 Central Java 1.456 23.433
15 D.I. Yogyakarta 0 0
16 East Java 0 16.711

 JAVA 24.846 67.214

17 Bali 0 0
18 West Nusa Tenggara 0 0
19 East Nusa Tenggara 0 0

 NUSATENGGARA 0 0

20 West Kalimantan 402.542 1.099
21 Central Kalimantan 269.934 4.745
22 South Kalimantan 117.121 10.455
23 East Kalimantan 45.375 2.282

 KALIMANTAN 834.972 18.581

24 North Sulawesi 0 0
25 Gorontalo 0 0
26 Central Sulawesi 2.060 1.100
27 South Sulawesi 13.237 0
28 West Sulawesi 400 0
29 Southeast Sulawesi 0 0

 SULAWESI 15.697 1.100

30 Maluku 0 0
31 North Maluku 0 0
32 Papua 5.127 0
33 West Papua 35 0

 MALUKU + PAPUA 5.162 0

 INDONESIA 2.992.985 246.872

No. Province PBS (Ha) Total (Ha)

1 Nanggroe Aceh Darussalam 17.543 123.071
2 North Sumatra 106.284 480.590
3 West Sumatra 3.297 130.854
4 Riau 23.779 392.090
5 Riau Islands 3.224 32.524
6 Jambi 6.955 451.617
7 South Sumatra 21.869 672.290
8 Kep. Bangka Belitung 0 30.923
9 Bengkulu 6.014 75.394
10 Lampung 14.073 85.967

 SUMATRA 203.038 2.475.320

11 DKI Jakarta 0 0
12 West Java 21.624 53.705
13 Banten 5.189 23.568
14 Central Java 6.271 31.160
15 D.I. Yogyakarta 0 0
16 East Java 9.119 25.830

 JAVA 42.203 134.263

17 Bali 95 95
18 West Nusa Tenggara 0 0
19 East Nusa Tenggara 0 0

 NUSATENGGARA 95 95

20 West Kalimantan 8.112 411.753
21 Central Kalimantan 2.834 277.513
22 South Kalimantan 11.260 138.836
23 East Kalimantan 10.567 58.224

 KALIMANTAN 32.773 886.326

24 North Sulawesi 0 0
25 Gorontalo 0 0
26 Central Sulawesi 0 3.160
27 South Sulawesi 5.808 19.045
28 West Sulawesi 809 1.209
29 Southeast Sulawesi 0 0

 SULAWESI 6.617 23.414

30 Maluku 0 0
31 North Maluku 0 0
32 Papua 0 5.127
33 West Papua 0 35

 MALUKU + PAPUA 0 5.162

 INDONESIA 284.726 3.524.580

Source: Statistics of the plantation directorate general

Table - 3

Areas of plantations by owners and condition of crops, 2003 - 2009

 (Hectares)

Year/owners Immature Mature Damaged Total

2003
* Smallholders 739.700 1.985.930 46.860 2.772.490
* State co. 41.849 187.060 12.716 241.625
* Private co. 84.269 171.017 20.711 275.997
* Total 865.818 2.344.007 80.287 3.290.112
2004
* Smallholders 610.453 2.099.739 37.707 2.747.899
* State co. 40.014 189.226 9.878 239.118
* Private co. 82.161 173.251 19.838 275.250
* Total 732.628 2.462.216 67.423 3.262.267
2005
* Smallholders 497.912 2.247.544 21.565 2.767.021
* State co. 27.993 201.332 8.287 237.612
* Private co. 70.292 185.318 19.148 274.758
* Total 596.197 2.634.194 49.000 3.279.391
2006
* Smallholders 466.588 2.333.874 32.520 2.832.982
* State co. 24.974 204.560 8.469 238.003
* Private co. 68.151 187.424 19.867 275.442
* Total 559.713 2.725.858 60.856 3.346.427
2007
* Smallholders 486.669 2.381.466 31.544 2.899.679
* State co. 24.558 205.303 8.384 238.246
* Private co. 67.487 188.778 19.527 275.792
* Total 578.714 2.775.547 59.455 3.413.717
2008
* Smallholders 429.558 2.486.250 27.923 2.943.731
* State co. 24.040 214.336 7.422 245.798
* Private co. 66.062 197.084 17.285 280.431
* Total 519.660 2.897.670 52.630 3.469.960
2009
* Smallholders 454.123 2.517.825 25.037 2.996.985
* State co. 23.159 217.058 6.655 246.872
* Private co. 65.640 199.587 15.499 280.726
* Total 542.922 2.934.470 47.191 3.524.583

Source: Statistics of the plantation directorate general

Table - 4

Rubber plantation areas and production of state companies, 2009

Companies Location Areas of rubber plantations

PT Perkebunan NAD (Aceh) Nucleus estate
Nusantara I 11.918 hectares
(PTPNI) Plasma 10.118
 hectares

PTPN II North Sumatra 11.265 hectares

PTPN III North Sumatra Nucleus estate
 45.327 hectares
 Plasma 9.150
 hectares

PTPN V North Sumatra Nucleus estate
 14.322 hectares
 Plasma 17.861
 hectares

PTPN VI North Sumatra Nucleus estate
 6.384 hectares
 Plasma 35.878
 hectares

PTPN VII Southern Sumatra Nucleus estate
 34.439 hectares
 Plasma 31.467
 hectares

PTPN VIII West Java Nucleus estate
 27.245 hectares
 Plasma 2.446
 hectares

PTPN IX Central Java Nucleus estate
 23.546 hectares

PTPN XII East Java Nucleus estate
 14.943 hectares

PTPN XIII Kalimantan Nucleus estate
 14.898 hectares
 Plasma 46.342
 hectares

PTPN XIV Sulawesi Nucleus estate
 2.513 hectares
 Plasma 2.556
 hectares

Companies Production per year

PT Perkebunan RSS : 1.906 tons
Nusantara I SIR : 14.328 tons
(PTPNI)

PTPN II RSS: 4.200 tons
 SIR 3 L: 600 tons
 SIR 10/20: 1.600
 tons
 BSR: 200 tons
 C.L. : 2.100 tons
 Thick latex : 2.224
 tons

PTPN III RSS : 2.885 tons
 SIR 3 CV : 2.329
 tons
 SIR 3 L : 1.250 tons
 SIR 3 WF : 155 tons
 SIR 10 : 12.334 tons
 SIR 20 : 1.370 tons
 Sediment : 1.496 to

PTPN V SIR - 3L: 4.221 tons
 SIR - 3 WF: 469 tons
 SIR 1 and 10:
 11.041 tons
 RSS: 45 tons

PTPN VI SIR - 3L: 139 tons
 SIR - 3 WF: 2.121
 tons
 SIR 10: 6.269 tons
 SIR 20: 5.274 tons

PTPN VII SIR: 38.393 tons
 RSS: 4.016 tons

PTPN VIII RSS : 6.624 tons
 TPC : 1.620 tons
 Thick latex : 3.979
 tons
 SIR : 8.098 tons

PTPN IX Rubber: 12.529 tons
 Thick latex : 4.500
 tons

PTPN XII Rubber : 10.351 tons

PTPN XIII RSS : 5.124 tons
 SIR : 24.956 tons
 Br. crepe : 1.212
 tons

PTPN XIV RSS : 1.299 tons
 SIR : 3.076 tons
 Br. crepe : 430 tons

Source: Statistics of the plantation directorate general

Table Areas of rubber plantations of PT PP London Sumatra
Indonesia, 2008 -2009

Nucleus Mature Immature Total
 (hectares) (hectares) (hectares)

2008 12.854 4.476 17.330

2009 12.858 4.537 17.394

Source: PT Lonsum. annual report

Table - 5

Rubber production by plantation owners

Year Production (Tons)

 PR PBN

1998 1.242.751 192.512
1999 1.206.410 181.522
2000 1.125.161 169.866
2001 1.209.284 182.578
2002 1.226.647 186.535
2003 1.396.244 191.699
2004 1.662.016 196.088
2005 1.723.318 196.673
2006 2.082.597 265.813
2007 2.176.686 277.200
2008 2.308.385 293.972
2009 *) 2.401.798 305.868

Year PBS Total

 226.635 1.661.898
 216.427 1.604.359
1998 206.401 1.501.428
1999 215.599 1.607.461
2000 217.177 1.630.359
2001 204.405 1.792.348
2002 207.713 2.065.817
2003 208.432 2.128.423
2004 288.821 2.637.231
2005 301.286 2.755.172
2006 319.515 2.921.872
2007 332.444 3.040.110
2008
2009 *)

Note:*) provisional figure

Source: Directorate general of plantations

Table - 6

Rubber production by provinces and owners, 2009 *

No. Provinces PR PBN
 (Tons) (Tons)

1 Nanggroe Aceh Darussalam 62.635 27.869
2 North Sumatra 269.142 88.396
3 West Sumatra 97.344 0
4 Riau 342.745 17.616
5 Riau Islands 23.337 0
6 Jambi 345.252 0
7 South Sumatra 533.417 28.780
8 Bangka Belitung 21.346 0
9 Bengkulu 44.531 9.954
10 Lampung 43.687 26.992

 SUMATRA 1.783.436 199.607

11 DKI Jakarta 0 0
12 West Java 4.672 33.415
13 Banten 10.324 1.566
14 Central Java 594 26.241
15 D.I. Yogyakarta 0 0
16 East Java 0 20.723

 JAVA 15.590 81.945

17 Bali 0 0
18 West Nusa Tenggara 0 0
19 East Nusa Tenggara 0 0

 NUSA TENGGARA 0 0

20 West Kalimantan 289.195 1.654
21 Central Kalimantan 199.824 5.651
22 South Kalimantan 86.027 13.781
23 East Kalimantan 21.348 1.609

 KALIMANTAN 596.394 22.695

24 North Sulawesi 0 0
25 Gorontalo 0 0
26 Central Sulawesi 2.104 1.621
27 South Sulawesi 2.082 0
28 West Sulawesi 401 0
29 Southeast Sulawesi 0 0

 SULAWESI 4.587 1.621

30 Maluku 0 0
31 North Maluku 0 0
32 Papua 1.764 0
33 West Papua 27 0

 MALUKU + PAPUA 1.791 0

 INDONESIA 2.401.798 305.868

No. Provinces PBS Total
 (Tons) Production
 (Tons)

1 Nanggroe Aceh Darussalam 9.533 100.037
2 North Sumatra 151.510 509.048
3 West Sumatra 4.287 101.631
4 Riau 35.832 396.193
5 Riau Islands 1.319 24.656
6 Jambi 3.752 349.004
7 South Sumatra 31.050 593.247
8 Bangka Belitung 0 21.346
9 Bengkulu 1.844 56.329
10 Lampung 8.540 79.219

 SUMATRA 247.667 2.230.710

11 DKI Jakarta 0 0
12 West Java 27.739 65.826
13 Banten 5.197 17.087
14 Central Java 6.912 33.747
15 D.I. Yogyakarta 0 0
16 East Java 6.424 27.147

 JAVA 46.272 143.807

17 Bali 118 118
18 West Nusa Tenggara 0 0
19 East Nusa Tenggara 0 0

 NUSA TENGGARA 118 118

20 West Kalimantan 7.669 298.518
21 Central Kalimantan 2.550 208.025
22 South Kalimantan 13.870 113.678
23 East Kalimantan 6.183 29.140

 KALIMANTAN 30.272 649.361

24 North Sulawesi 0 0
25 Gorontalo 0 0
26 Central Sulawesi 0 3.725
27 South Sulawesi 7.108 9.190
28 West Sulawesi 1.006 1.407
29 Southeast Sulawesi 0 0

 SULAWESI 8.114 14.322

30 Maluku 0 0
31 North Maluku 0 0
32 Papua 0 1.764
33 West Papua 0 27

 MALUKU + PAPUA 0 1.791

 INDONESIA 332.444 3.040.110

Note: *) provisional figure

Source: Directorate general of plantations

Table - 7

Plantation areas and production (PR + PBN + PBS) by provinces and
condition of plants

No. Province Area (Hectares)
 TBM/ TM/
 Immature Mature

1 NAD 13,794 104,834
2 North Sumatra 44,653 430,940
3 West Sumatra 29,671 95,881
4 Riau 32,369 357,511
5 Riau Islands 5,439 26,533
6 Jambi 66,789 381,197
7 South Sumatra 106,538 562,479
8 Bangka Belitung 8,526 22,363
9 Bengkulu 15,312 59,151
10 Lampung 21,742 64,058

 SUMATRA 344,833 2,104,947

11 DKI Jakarta 0 0
12 West Java 5,773 44,825
13 Banten 2,173 19,604
14 Central Java 7,650 23,511
15 D.I. Yogyakarta 0 16
East Java 6,795 18,004

 JAVA 22,391 105,944

17 Bali 0 94
18 West Nusa Tenggara 0 0
19 East Nusa Tenggara 0 0

 NUSA TENGGARA 0 94

20 West Kalimantan 59,427 348,087
21 Central Kalimantan 60,441 215,085
22 South Kalimantan 25,269 112,686
23 East Kalimantan 18,737 30,991

 KALIMANTAN 163,874 706,849

24 North Sulawesi 0 0
25 Gorontalo 0 0

26 Central Sulawesi 0 3,157
27 South Sulawesi 11,818 7,224
28 West Sulawesi 0 1,209
29 Southeast Sulawesi 0 0

 SULAWESI 11,818 11,590

30 Maluku 0 0
31 North Maluku 0 0
32 Papua 0 5,018
33 West Papua 6 29

 MALUKU + PAPUA 6 5,047

 INDONESIA 542,922 2,934,471

 Area (Hectares)

No. Province Damaged Total
 plantations

1 NAD 4,443 123,071
2 North Sumatra 4,996 480,590
3 West Sumatra 5,302 130,854
4 Riau 2,210 392,090
5 Riau Islands 552 32,524
6 Jambi 3,630 451,617
7 South Sumatra 3,272 672,290
8 Bangka Belitung 37 30,926
9 Bengkulu 931 75,394
10 Lampung 167 85,967

 SUMATRA 25,540 2,475,323

11 DKI Jakarta 0 0
12 West Java 3,170 53,705
13 Banten 1,791 23,568
14 Central Java 0 31,160
15 D.I. Yogyakarta 0 0
16 East Java 1,032 25,830

 JAVA 5,993 134,263

17 Bali 1 95
18 West Nusa Tenggara 0 0
19 East Nusa Tenggara 0 0

 NUSA TENGGARA 1 95

20 West Kalimantan 4,240 411,753
21 Central Kalimantan 1,988 277,513
22 South Kalimantan 881 138,836
23 East Kalimantan 8,496 58,224

 KALIMANTAN 15,605 886,326

24 North Sulawesi 0 0
25 Gorontalo 0 0

26 Central Sulawesi 3 3,160
27 South Sulawesi 3 19,045
28 West Sulawesi 0 1,209
29 Southeast Sulawesi 0 0

 SULAWESI 6 23,414

30 Maluku 0 0
31 North Maluku 0 0
32 Papua 109 5,127
33 West Papua 0 35

 MALUKU + PAPUA 109 5,162

 INDONESIA 47,254 3,524,583

 Production to total
 area

No. Province Production TM
 (Ton) (Kg/ha)

1 NAD 100,037 954
2 North Sumatra 509,048 1,181
3 West Sumatra 101,631 1,060
4 Riau 396,193 1,108
5 Riau Islands 24,656 929
6 Jambi 349,004 916
7 South Sumatra 593,247 1,055
8 Bangka Belitung 21,346 955
9 Bengkulu 56,329 952
10 Lampung 79,219 1,237

 SUMATRA 2,230,710 1,060

11 DKI Jakarta 0 0
12 West Java 65,826 1,469
13 Banten 17,087 872
14 Central Java 33,747 1,435
15 D.I. Yogyakarta 0 0
16 East Java 27,147 1,508

 JAVA 143,807 1,357

17 Bali 118 1,255
18 West Nusa Tenggara 0 0
19 East Nusa Tenggara 0 0

 NUSA TENGGARA 118 1,255

20 West Kalimantan 298,518 858
21 Central Kalimantan 208,025 967
22 South Kalimantan 113,678 1,009
23 East Kalimantan 29,140 940

 KALIMANTAN 649,361 919

24 North Sulawesi 0 0
25 Gorontalo 0 0

26 Central Sulawesi 3,725 1,180
27 South Sulawesi 9,190 1,272
28 West Sulawesi 1,407 1,164
29 Southeast Sulawesi 0 0

 SULAWESI 14,322 1,236

30 Maluku 0 0
31 North Maluku 0 0
32 Papua 1,764 352
33 West Papua 27 936

 MALUKU + PAPUA 1,791 355

 INDONESIA 3,040,109 1,036

No. Province Production to total
 area

 Total
 (Kg/ha)

1 NAD 813
2 North Sumatra 1,059
3 West Sumatra 777
4 Riau 1,010
5 Riau Islands 758
6 Jambi 773
7 South Sumatra 882
8 Bangka Belitung 690
9 Bengkulu 747
10 Lampung 922

 SUMATRA 901

11 DKI Jakarta
12 West Java 1,226
13 Banten 725
14 Central Java 1,083
15 D.I. Yogyakarta
16 East Java 1,051

 JAVA 1,071

17 Bali 1,242
18 West Nusa Tenggara
19 East Nusa Tenggara

 NUSA TENGGARA 1,242

20 West Kalimantan 725
21 Central Kalimantan 750
22 South Kalimantan 819
23 East Kalimantan 500

 KALIMANTAN 733

24 North Sulawesi
25 Gorontalo

26 Central Sulawesi 1,179
27 South Sulawesi 483
28 West Sulawesi 1,164
29 Southeast Sulawesi

 SULAWESI 612

30 Maluku
31 North Maluku
32 Papua 344
33 West Papua 771

 MALUKU + PAPUA 347

 INDONESIA 863

Note: TBM = Plantations not yet producing

TM = Producing plantations

Source: Plantation Directorate General, Data Consult/ICN

Table - 8

Productivity of rubber plantations by owners, 2004 - 2009

 (Kg/hectare/year)

Year Smallholders Government Private Total

2004 792 1,036 1,199 839

2005 818 1,042 1,200 862

2006 892 1,299 1,541 967

2007 914 1,350 1,596 993

2008 928 1,372 1,621 1,008

2009 *) 954 1,409 1,666 1,036

Source: Data Consult/ICN

Table - 9

Production of crumb rubber, 2004 - 2007

Year Prod. Capacity Production
 (tons/year) (tons)

2004 2060000 1907768

2005 2246000 1900023

2006 2470000 2174334

2007 2470000 2270000

Source: Ministry of Industry, Data Consult processed

Table - 10

Rubber exports, 1999 - 2008

 Export Imports

Year Volume Value Volume Value
 (Tons) (000 US$) (Tons) (000 US$)

1999 1.494.543 849.200 17.962 10.727
2000 1.379.612 888.623 32.548 18.120
2001 1.453.382 786.197 9.298 6.557

 Export Imports

Year Volume Value Volume Value
 (Tons) (000 US$) (Tons) (000 US$)

2002 1.495.987 1.037.562 9.911 7.334
2003 1.662.210 1.494.811 17.840 15.555
2004 1.874.261 2.180.029 7.648 6.876
2005 2.024.593 2.582.875 6.687 6.441
2006 2.286.897 4.321.525 6.905 12.926
2007 2.407.972 4.868.700 9.915 13.327
2008 2.283.154 6.023.296 12.570 24.204

Source: BPS

Table - 11

Rubber prices in the world market (US$/lb), 1994 - 2009

Year Type of rubber in quality

 RSS-I

1994 57.68
1995 78.81
1996 70.01
1997 52.32
1998 38.61
1999 34.68
2000 36.64
2001 33.18
2002 41.18
2003 55.55
2004 66.99
2005 65.55
2006 105.09
2007 112.00
2008 69.44
2009 85.41

Source: Weekly report of Bank Indonesia
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Title Annotation:AGRICULTURE
Publication:Indonesian Commercial Newsletter
Article Type:Statistical data
Geographic Code:9INDO
Date:May 1, 2010
Words:7929
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