• Indonesia’s Rubber Industry – Increase Competition and Falling Prices

    • The total size of Indonesia’s rubber plantation area has risen steadily during the last decade. In 2016, Indonesia rubber plantations covered a total of 3.65 million hectares.

    • As the second largest rubber producer in the world, Indonesia’s supply of rubber is very important for the global market.

    • The tyre market in Indonesia is forecasted to grow at a CAGR of over 13% during 2015-2020. Major factors that are expected to boost Indonesia’s tyre industry include abundant raw material availability, continuing government support and growing domestic automotive industry.

    • Domestic tire sales are highly dependent on the nation’s car and motorcycle sales. Indonesia’s vehicle sales reaching 1.1 million units in 2017, growing at a rate of 5 percent and riding strong domestic consumption.

    • This industries will be more strong with raised S&P Global Ratings for Indonesia’s rating to “investment grade”, bringing Indonesia is a stable country with decent of investment. It is boosting growth and demand from all rising industrial sectors included automotive industries. So it makes increase the requirement for tyre industries.

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