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Indonesia fully opens up crumb rubber investment due to excess supply

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JAKARTA ( – The Indonesian government has decided to fully open up investment in crumb rubber to foreign investors in order to absorb excess supply of raw rubber products.

Minister for Industry Saleh Husin was quoted by Antara as saying Tuesday said that at present the supply of raw rubber materials reach 3 million tons per annum, while domestic crumb rubber producers only take 700,000 tons per annum, thus creating excess supply.

The excess supply has led to a price decline of raw rubber and also discouraged farmers to produce rubber raw products.

He made the statement in response to complaints from crumb rubber industry players as the decision may hurt the existing crumb rubber producers.

The Indonesian government has recently revised negative investment list (DNI) in which foreign investors can have 100 percent ownership in crumb rubber companies.

Indonesia is one of the largest rubber producer in the world along with Malaysia and Thailand.  (*)


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