Indonesia rubber output to rise 7 percent in 2013

ERJ staff report (LMH)

Jakarta - The Indonesian Rubber Association (Gapkindo) says Indonesia's rubber output will grow by 7 percent to 3.2 million tonnes thousand 13 due to higher yields, Reuters reports.

Rubber production in 2012 was 3 million tonnes and exports were 2.8 million tonnes, Rusdan Dalimunthe, the association's executive director told Reuters. The expected decline in exports will be driven by rising domestic demand from the tire industry, he said.

Dalimunthe noted that a significant increase in domestic rubber consumption could help reduce Indonesia's dependency on the rubber export market amid weakening international prices.

Gapkindo previously said 2012 output would fall by 10 percent on the year to 2.8 million tonnes due to dry weather conditions. The new industry estimate for 2013 is above the Agriculture Ministry forecast of 2.77 million tonnes .

The US is Indonesia's biggest rubber buyer, taking about 20 percent of its exports, with China and Japan bashing about 15 percent each.

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News story from Reuters