The government of Indonesia has striven to enlarge productive rubber plantation in an effort to comply with rising domestic demand and raise export.
Secretary General Indonesian Industry Ministry Haris Munandar said that the ministry supports the hike of the productive area to 3.5 million hectares from 3 million hectare at present.
He said that domestic consumption of the commodity is only 580,000 tons per year, and it is potentially to be increased.
“This is opportunity and challenge for the rubber industry,” he said in a statement.
The government would boost growth of downstream industry at the sector to boost domestic consumption, said Munandar.
On export, he said a total of 70 percent of the production is shipped overseas with value of 1.5 billion U.S. dollars per year.
Indonesia, along with Malaysia and Thailand is a major world rubber producer.