Rubber producers to support regional market plan

ERJ staff report (BC)

Jakarta - Rubber producers in Indonesia, the world's second-largest supplier of natural rubber, are to support a proposal by the International Tripartite Rubber Council (ITRC) to set up a regional market for rubber contract spots and futures, reports Linda Yulisman of the Jakarta Post.

Asril Sutan Amir, a member of the Indonesian Rubber Association (Gapkindo) advisory council, predicted that the regional market could be established as soon as next year, engaging other Southeast Asian countries besides the two top producers, Thailand and Malaysia.

“The existence of the regional market will increase price transparency and form benchmark prices that can be accepted internationally,” he said.

Such a market could also significantly help to push up prices of the commodity according to supply and demand rules, Asril added.

The proposal to form the regional rubber market came up on 12 December as ministers from the three ITRC members - Indonesia, Malaysia and Thailand - concluded the Council's annual meeting in Phuket, Thailand.

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