REPUBLIKA.CO.ID, JAKARTA - Indonesian Government cut the target of rubber production in 2013. The reduction is made following the commitment established between Indonesian and rubber producing countries, such as Malaysia and Thailand, to decrease rubber supply in order to increase the price.
Minister of Agriculture, Suswono, said on Wednesday rubber producing countries must cooperate to control the supply. The price of rubber in the world is decreasing throughout 2012 due to global economic conditions.
Indonesia, Malaysia and Thailand signed a Joint Ministerial Declaration (the Bali Declaration 2001) and established International Tripartite Rubber Council (ITRC) in 2001. Suswono regrets that Vietnam, as a big rubber producing countries, refused to join the council.
Vice Minister of Agriculture, Rusman Heriawan, said the refusal of Vietnam to join the council could inflict losses to Indonesia. Vietnam can provide empty market while the three countries agree to decrease the supply. Heriawan said the rubber issue would be taken to Asean forum