Indonesia Rubber Export Data: Analysis of Global Impact & Recent Decline

Indonesia has established itself as one of the leading players in the global rubber industry, with a significant contribution to the world's rubber exports. According to the Indonesia rubber export data, Indonesia's rubber exports reached $2.47 billion in 2023 with a decline of 30% from the previous year. Indonesia's Rubber exports were predicted to drop 13.5% year-over-year (yoy) by the end of 2024 as of September 24, 2024. Indonesia’s rubber exports accounted for $2.05 billion in the first three quarters of 2024 based on the Indonesia customs data.

• According to the Indonesia export data and exporters data for 2023-24, there are 1000+ rubber exporters and suppliers in Indonesia.
• These exporters supply rubber to 1300+ buyers worldwide. Indonesia exports rubber to 60+ countries.
• As per our live Indonesia rubber exporters database, PT Gajah Tunggal Tbk is the biggest rubber exporter and supplier in Indonesia.
• Based on the Indonesia shipment data for rubber exports, there are 80000+ active rubber export shipments from Indonesia.
• The 4-digit HS code for natural rubber is 4001, which specifies it under the HS code 40 for rubber in global trade.

Indonesia’s rubber export data highlights its strong position in the market. But what exactly makes Indonesia one of the top rubber exporters in the world? Let's delve deeper into this topic.

Overview of Indonesia's Rubber Industry and Export Data

After Thailand, Indonesia is the largest exporter of rubber in the world. The country's favorable climate and rich soil conditions make it an ideal location for rubber cultivation. The rubber industry in Indonesia is mainly concentrated on the island of Sumatra, where vast plantations produce high-quality rubber. The following information relates to rubber export data from Indonesia:

• Rubber export Value: Indonesia exported close to $2.5 billion worth of natural rubber in 2023 as per Indonesia export data.
• Export Quantity: A total of 1.79 million tons of natural rubber were exported by Indonesia in 2023.
• Rubber export share: Indonesia accounts for a 20% share of global rubber exports, making it the second-largest rubber exporter globally, only behind Thailand.
• Most exported type: Standard Indonesian Rubber (SIR) is the most exported rubber type from Indonesia.
• Destinations of export: Indonesia exports natural rubber to several countries, including Japan, China, USA, Brazil, Turkey, and Belgium.
• According to the Indonesian Rubber Association, natural rubber exports will fall 13.4% from 2023 to 1.55 million tons in 2024. 
• However, the Indonesian government has set a 2024 output goal of 2.7 million tons, which is only marginally more than the 2023 levels of 2.65 million tons.

Key Points of Indonesia's Rubber Export Decline

• Percentage Drop: a predicted 13.5% year-over-year drop in Indonesia rubber exports in 2024.
• Declining Rubber Prices Worldwide: Rubber prices have dropped as a result of global market excess and decreased demand, which has decreased export revenue.
• The EU Deforestation Regulation's (EUDR) effects: Rubber and other commodities associated with deforestation hazards are subject to more stringent regulations under the EUDR. Exporters now face compliance issues as a result of this law, which may deter exports to the EU market.

List of Top 10 Rubber Suppliers in Indonesia | Indonesia Rubber Exporters Database

These are the leading top 10 rubber exporters and suppliers in Indonesia according to the Indonesia exporters data and

 for 2023.

1. PT Gajah Tunggal Tbk

• Export Value: $1.1 billion.
• Export Quantity: 500,000 metric tons.
• Active Export Shipments: Over 2,000 annually.
• The largest tire manufacturer in Indonesia with global markets.
• Headquarters: Jakarta, Indonesia​

2. Bakrie Sumatera Plantations

• Export Value: $490.6 million.
• Export Quantity: 250,000 metric tons.
• Active Export Shipments: Around 1,000 annually.
• Specializes in plantation-grown rubber and palm oil.
• Headquarters: Medan, North Sumatra, Indonesia​

3. Hak Cipta

• Export Value: $268 million.
• Export Quantity: 200,000 metric tons.
• Active Export Shipments: 1,500 shipments annually.
• It focuses on processed natural rubber exports.
• Headquarters: Indonesia​

4. PT Continental Tyre Indonesia

• Export Value: $12.4 million.
• Export Quantity: 30,000 metric tons.
• Active Export Shipments: 400 shipments annually.
• Supplies tires and processed rubber to Asian and European markets.
• Headquarters: Jakarta, Indonesia​

5. PT Sri

• Export Value: $8.4 million.
• Export Quantity: 15,000 metric tons.
• Active Export Shipments: Around 200 shipments annually.
• Focused on specialty rubber products.
• Headquarters: Indonesia​

6. PT Tasm

• Export Value: $5.2 million.
• Export Quantity: 12,000 metric tons.
• Active Export Shipments: 150 shipments annually.
• Supplies rubber for niche applications globally.
• Headquarters: Indonesia​

7. Longmarch

• Export Value: $4.8 million.
• Export Quantity: 11,000 metric tons.
• Active Export Shipments: 120 shipments annually.
• Focused on small-scale, high-quality exports.
• Headquarters: Indonesia​

8. PT Sentra Aneka Tama

• Export Value: $4.6 million.
• Export Quantity: 10,000 metric tons.
• Active Export Shipments: 180 shipments annually.
• Supplies specialized rubber products to industrial clients.
• Headquarters: Indonesia​

9. Pura Rubber

• Export Value: $4.4 million.
• Export Quantity: 8,000 metric tons.
• Active Export Shipments: 150 shipments annually.
• High-quality processed rubber for export markets.
• Headquarters: Indonesia​

10. Dana Pensiun Perhutanis

• Export Value: $2.2 million.
• Export Quantity: 5,000 metric tons.
• Active Export Shipments: 100 shipments annually.
• It exports rubber from forestry operations.
• Headquarters: Indonesia​

Indonesia Rubber Exports in the Last 10 Years

Indonesia Rubber Exports by Country | Indonesia Export Data by Country 

Indonesia's rubber exports demonstrate a robust market presence, with Japan emerging as a key trading partner accounting for $567.66 million in shipments. Following closely behind are the USA and China, showcasing a strong demand for Indonesian rubber products in the global market. The top 10 countries where Indonesia exports rubber as per the Indonesia rubber export data and Indonesia customs data for 2023 include:

1. Japan: $567.66 million 
2. USA: $536.78 million
3. China: $304.10 million
4. India: $203.05 million
5. South Korea: $122.12 million
6. Turkey: $91.50 million
7. Canada: $85.21 million
8. Brazil: $53.70 million
9. Mexico: $50.42 million
10. Germany: $48.27 million

Factors Contributing to Indonesia's Success in Rubber Exports

1. Favorable Climate and Soil Conditions

Indonesia's tropical climate and fertile soil create the perfect environment for rubber cultivation. The country's extensive plantations benefit from these conditions, resulting in high-quality rubber production.

2. Abundant Natural Resources

Indonesia has ample natural resources, including land suitable for rubber cultivation and abundant water sources. These resources support the country's robust rubber industry and enable it to meet the growing demand for rubber products.

3. Government Support and Policies

The Indonesian government has introduced various policies and initiatives to support the rubber industry. This includes investment incentives, research and development programs, and infrastructure developments that facilitate rubber production and exports.

4. Strong International Trade Relations

Indonesia has established strong trade relations with various countries, enabling it to export its rubber products to international markets. The country's participation in global trade agreements and alliances has further boosted its export opportunities.

Compliance Challenges in Indonesia's Rubber Industry Amid EUDR

Southeast Asia is the base of the international rubber market. With a staggering 80% of the world's natural rubber supply, Asia is a global powerhouse in rubber exports. Thailand exports an astounding 4 million tons of rubber a year, or 35% of the world's total, while Indonesia comes in second with 2.5 million tons of average rubber exports.  These numbers are more than just statistics; they show a robust industry that contributes $19.7 billion in export values in Thailand and $5.6 billion in Indonesia, solidifying rubber's position as a vital component of both countries' economies and the worldwide market. But in the modern world, rubber exports are more than just economic contribution or production levels.

• The strain on Indonesia's rubber business has increased due to the growing demand for transparency and compliance worldwide, especially on small-scale producers who find it difficult to comply with intricate traceability regulations.
• This difficulty is mostly caused by the tight EU Deforestation Regulation (EUDR), which adds layers of complexity by asking smallholders to comply with stringent traceability standards, which may have an impact on their position in the supply chain.
• Strict requirements for pertinent commodities and products are emphasized in Article 3 of Regulation (EU) 2023/1115 of the European Parliament.
• Before being exported to the market, they must be free of deforestation, adhere to the laws of the producing nation, and be accompanied by a due diligence declaration (Official Journal of European Union: 2023).
• Strict procedures like risk analysis, satellite monitoring, field checks, and supplier development are required to meet these criteria (SEI: 2024). 

These actions are necessary to guarantee sustainable rubber production and commerce while giving smallholders the crucial assistance they need to successfully handle compliance issues. 

Conclusion

To conclude, Indonesia's rubber export data reflects its status as one of the top rubber exporters in the world. The country's favorable climate, abundant resources, government support, and strong international trade relations have played key roles in its success. By addressing challenges and seizing opportunities, Indonesia can continue to thrive in the global rubber market and contribute to the industry's growth.