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The Government is developing Rubber for Asphalt Mixing

The effort was made to increase the price of rubber fall.

REPUBLIKA.CO.ID, PONTIANAK – Minister of Industry, Airlangga Hartarto, said the government is continuing to undertake various efforts to increase demand for local rubber products, especially in the international market. This is done in the light of the world's unfriendly rubber prices, which are in the range of 1,300 dollars & US to 1,350 dollars in the United States.

Airlangga explained, one of the government's efforts was to provide an investment to make a prototype or to pilot rubber as a mixture of asphalt making. The research was carried out with the Ministry of Public Works and Public Housing (PUPR) as an attempt to add value to rubber.

"I'll be completed soon to readiness," he said during a work visit with the small black rubber industry PT New Kalbar Processors in Pontianak, Saturday (11/17).

In this co-operation, the Ministry of Industry is responsible for the development of rubber asphalt products, while the Ministry of Information Technology has the mandate to apply for products in the field. Airlangga is of the opinion that the use of natural rubber has been specifically aimed at increasing the use of domestic natural rubber. This effort will certainly help farmers whose fate has been diverted due to a reduction in rubber prices.

Airlangga said the second attempt was to encourage the replanting or replanting program through export taxes. This method has been applied to oil palm plantations through the Palm Oil Plant Fund Management Agency (BPDPKS). Then, export tax receipts will be reprocessed for use as replanting funds in people's gardens.

Airlangga has not been able to detect the timing of operating the scheme, but it's called it as a matter of urgency. This is because the rubber productivity of Indonesia is lower than other countries because it has not been for a long time replanting due to price pressures. "For the time being, we are waiting for the industry's willingness," he said.

In addition, the government has also announced rubber mochion or rubber powder from the negative investments list (DNI). With this effort, it is expected that foreign investment can enter the government and rubber farmers to increase production.

Airlangga explained that the issuance of the small rubber industry of DNI was without cause. So far, domestic investment in the industry has been relatively zero, while foreign investors have expressed an interest. Moreover, according to him, the tire industry continues to expand, while rubber mochion because the growth of raw material is limited.

Chief Executive PT Kirana Megatara Group Martinus S Sinarya, his party as part of the rubber processing industry is trying to continue to pursue government policies. With the issuance rubber mochion From DNI, it will challenge entrepreneurs. "Especially in increasing our efficiency and productivity," he said when contacting her on Sunday (18/11).

Martinus, at the moment, explained that rubber raw materials will not be available as a problem for foreign investors. However, production capacity was set more than the availability of raw materials. Martinus noted that the reach of hundreds of rubber companies in Indonesia reached 5.6 million tonnes each year while the availability of raw materials was only 3.5 million tonnes.

With this figure, there is a gap of 2.1 million tonnes of rubber per year between production and demand. This means that the current problem is to produce the river to meet current capacity, so that more government intervention is needed.

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