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Suharto said that the estimate still depends on the weather. If the rainfall in the planting area is still excessive, the output will be consistent with the level of 2.85 million tons last year.
Indonesia is the second largest natural rubber producer and exporter in the world, second only to Thailand.
Natural rubber prices are currently at record highs, as rubber production in major producing countries was damaged due to unfavorable weather conditions last year, and global demand rebounded from the downturn in the economic crisis. The TOCOM benchmark June rubber futures contract hit a record high of 442.9 yen per kg last Friday. At the same time, the rubber grades for tire grades from major producing countries such as Thailand, Indonesia and Malaysia are also above $5,000/ton.
Indonesia's natural rubber production is expected to increase by 8% this year
Suharto Honggokusumo, chief executive of the Indonesian Rubber Association, said Indonesia's natural rubber production in 2011 will increase by 8% to 3.08 million tons.