Indonesia's Crumb Rubber Exports Fall 14.7% in 2020

Based on data from the Central Bureau of Statistics (BPS), Indonesia's crumb rubber exports reached US$2.9 billion. This is a 14.7% decrease compared to the previous year's US$3.4 billion.

Crumb rubber exports peaked at US$5 billion in 2017, a 56.25% increase, but declined from 2018 to 2020.

The same pattern is observed in export volume. Crumb rubber export volume increased by 16% in 2017, reaching 2.9 million tons, but decreased from 2018 to 2020 to 2.2 million tons.

The United States is the main destination for Indonesia's crumb rubber exports. In 2020, exports to the US reached US$589.6 million with a volume of 439,300 tons.

Japan is second, with crumb rubber exports reaching US$514.1 million last year. China and India follow, with crumb rubber exports of US$378.7 million and US$230.7 million respectively.

Indonesia's crumb rubber exports to South Korea amounted to US$189.5 million, while exports to Brazil reached US$80.2 million.

For information, crumb rubber is specially processed natural rubber with technically guaranteed quality. The government and rubber industry players are targeting rubber and rubber goods exports of US$6.3-7.3 billion in 2021.

However, exporters face challenges, including the policy of eliminating peak electricity tariffs (a case in South Kalimantan), high shipping costs (freight cost), and the long-term replanting program for people's natural rubber plantations to ensure the sustainability of raw materials for the industry. The Ministry of Trade noted that these challenges will be discussed further.