Rubber plants were introduced to Indonesia in 1864. Initially planted in the Bogor Botanical Gardens as a collection plant, then developed in several areas such as the Pamanukan and Ciasem areas, West Java as commercial plantation crops. Rubber was developed in eastern Sumatra in 1902 and in Java in 1906. Rubber is a prima donna plantation commodity for export. Indonesia ranks second as the largest natural rubber producer in the world, along with Thailand and Malaysia contributing 75% of the world's total natural rubber production. Indonesia, in particular, contributed 26% in exporting rubber for the international market. It is predicted that in 2020 the world's natural rubber consumption will continue to increase by an average of 2.6% per year. The United States, Europe, Japan and China are major consumers of natural rubber.
In 2019, the national rubber processing industry contributed significantly to foreign exchange earnings for US $ 3.422 billion. Until now, there are 163 natural rubber industries with direct employment of 60,000 people. Natural rubber production reached 3.3 million tons, including SIR (crumb rubber), concentrated latex, and RSS (ribbed smoked sheet). While 20% of this volume is processed domestically by the hilir industry into tires, retreads, footwear, rubber articles, and other rubber goods (MRG) manufacturers, meanwhile, 80% of Indonesia's natural rubber production is exported.
PALM SALES INDEX IN INDONESIA