REPUBLIKA.CO.ID, MEDAN -- The export price of natural rubber has remained low at US$2.16 to US$2.24 per kilogram until Mid January on weak demand in international markets.
"The price even tended to decline. Exporters began to be worried although US dollar is still strong against rupiah," executive secretary of the Indonesian Association of Rubber Companies (Gapki) of North Sumatra, Edy Irwansyh said here on Monday.
On January 13, in 2014, the price of SIR 20 at Singapore commodity exchange closed at US$2.169 per kg for February shipment lower than US$2.200 per kg on January 10, Edy said.
The price fall in export market resulted in a decline in the selling price of raw rubber in the country, he said.
On Monday, Jan. 13, 2014 the price of raw rubber was Rp21,238-Rp23,238 per kg down from Rp22,072 - Rp24,072 per kg earlier.
Laksamana Adiyaksa, the secretary of the Association of Indonesian Businessmen (Apindo) of North Sumatra, said the price fall caused great concern as after palm oil, rubber is the largest foreign exchange earner for the province.
"In 2013, the foreign exchange earning already fell from the previous year. If the price continued to fall the earning would be smaller again this year," Laksamana said.
Laksamana said rubber exports from North Sumatra were valued at US$1.931 billion in the first 11 months of 2013, down 11.67 percent on-year on weak demand.
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