Sunday, April 20, 2008

Rubber Factories In West Kalimantan on Brink of Collapse

Antara/Borneo Tribune, Pontianak

RUBBER processing plants in West Kalimantan are now on the brink of collapse because of difficculties in meeting purchase contracts signed three months ago as the result of limited raw materials from the farmers. "Now competion, mostly unfair, has become widespread in obtaining the raw materials," chairman of the West Kalimantan Indonesian Rubber Producers Association (Gapkindo) Leo Abam said in Pontianak on Monday.

West Kalimantan has now 15 rubber processing factories with a capacity of 400,000 tons, but the province`s rubber production reached not more than 180 thousand tons, leaving a significant shortage.

He said that this condition was among others caused by increase in the number of rubber processing plants, while rubber production has yet to be raised.

Another reason was the fact that rainfall in the province in the last couple of months had been quite high, so that rubber production had dropped to 20 percent.

"The rubber raw materials smuggled to Malaysia through the various border posts, although incidentally, also contributed to the lack of supply in West Kalimantan," Leo Abam said.

He added that the inadequate initial processing by the farmers also caused an increase in cost the factories have to burden for improving the quality of the rubber basic materials from 60 percent to a 100 percent dried rubber.

"The extra cost reached Rp2,700 per kilogram," Leo Abam said. However the factories are still able to cover the extra cost as the price of the 100 percent dried rubber reached Rp23 thousand per kilogram.

In this context, he asked the regional administration not to encourage the establishment of more rubber processing factories. "It would be better to expand the existing rubber crops, because the prospect in the next five years will be promising," Leo Abam said.

The expansion includes financial support to the rubber growers because they are still facing lack of capital. One hectares of rubber trees needs Rp 3 million for the purchase of seedlings to care before harvest about three to four years after planting.

1 komentar:

Ivan said...

We can help all the rubber planters or Leo Abam to over come their problem ( Raw rubber material shortage--- Latex or Cup Lump )
We can help to increase the rubber production yield per hectare by using the latest Latex stimulant system technology for old rubber trees.Trees that are 15years and above will be the most suitable.

Any parties who have the contact and access to all these rubber planters who may be interested may contact us for further cooperation.