Indonesia rubber exporters get a quota of export restriction as much as 91,150 tonnes until March 2018.
The Chairman of the Joint Entrepreneurs of Rubber Indonesia (Gapkindo) Moenardji Soedargo explains rubber exporters will delay or withhold exports as much as 91,150 tonnes until March 2018. It followed agreements implementation of Agreed Export Tonnage Scheme (AETS) or rubber export restrictions by Indonesia, Thailand, and Malaysia on Friday, (22/12/2017).
She supports the commitment of the Government of Indonesia in the International Tripartite Rubber Council (ITRC) related export restrictions. It believed the decision would restore the rubber price to its normal position.
"The commitment between the three countries is very strong, and this policy was issued with strict and strong regulation, so that the exporter will comply with the regulation that have been issued," said Moenardji when contacted by Bisnis, Friday (22/12/2017).
Meanwhile, Director General of the Directorate General of Foreign Trade (Kemendag) Oke Nurwan, confirmed that the deal would take place until March 2018. However, the policy will not interfere with the supply of the farmers to exporters.
Gapkindo set targets export amounted to 2.7 million tons in 2017 or up from the realization of year 2016 amounting to 2.6 million tonnes. Meanwhile, this year's targeted production is able to reach 3.2 million tons.
Countries of the ITRC has agreed to take back a policy of trimming of rubber exports as many as 350,000 tons until March 2018. In addition to Indonesia, Thailand also get quotas restrict by as much as 234,810 tons and 20,000 tons of Malaysia.
Application of the AETS was last conducted in March 2016-December 2016. At that time, the ITRC agreed to cut exports to lift global rubber prices that had fallen to under US $1 per kilogram. The scheme claimed success to raise the price of rubber to break the level of US $2 per kilogram.
At that time, three members of the ITRC agreed to reduce the volume of exports as much as 700,000 metric tons. Vietnam also gets allocations of export reduction of 85,000 metric tons, but it wasn't realized until the quota was taken over by Indonesia, Malaysia, and Thailand.
Source: Bisnis Indonesia
