As the second-largest rubber producer, Indonesia supplies a substantial amount of rubber to the global market. Since the s, the Indonesian rubber industry has been experiencing steady production growth. Most of the country&#;s rubber output &#; approximately percent &#; is produced by smallholder farmers. Government and private estates thus play a minor role in the domestic rubber industry.

The second chart shows a steep recovery in the natural rubber price in the last quarter of and start of . The reason behind this price increase are supply disruptions in Thailand. Massive and widespread floods in the southern part of Thailand, where most of the nation&#;s rubber cultivation takes place, had a big impact on the natural rubber supply (both production and distribution). Severe drought was also cited a reason for weak rubber production in Thailand.

Back at the Saigon Exhibition and Convention Center from to March , The th International Plastics & Rubber Technologies and Materials Exhibition for Vietnam organized by Informa Markets Vietnam in conjunction with Messe Düsseldorf Asia promises to provide a potential trading platform for plastic and rubber manufacturers and processors to introduce products, build brand image, expand new cooperation opportunities as well as identify economic potentials in the market of Vietnam.

Indonesia&#;s downstream rubber industry is still underdeveloped. Today, the country depends on imports of processed rubber products due to the lack of domestic processing facilities and the lack of a well-developed manufacturing industry. Little domestic consumption of rubber explains why Indonesia exports about percent of its rubber production. However, in recent years there is a change visible (although a slow one) as exports slightly decline on the back of increased domestic consumption. About half of the natural rubber that is absorbed domestically in Indonesia goes to the tire manufacturing industry, followed by rubber gloves, rubber thread, footwear, retread tires, medical gloves, carpets and other tools.

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