Economic perspective of indonesian rubber on agroforestry development

Miftahul Azis,Linda Purwaningrat,Bambang Sayaka,Saktyanu Kristyantoadi Dermoredjo,Y Asih Purwestri,I Yoga Prasada,G Wirakusuma,S Subandiyah,K Restu Susilo,P Montoro,A Dewi,W Dyah Sawitri

doi:10.1051/e3sconf/202130502007

Abstract

Rubber commodity is one of the plantation commodities that supports agroforestry, besides that it is one of the attractors in the creation of labor in rural areas. The economic linkages around intensive plantations will affect development of rubber in agroforestry areas. Rubber agroforestry is important because demands of global trade will encourage the development of agroforestry itself. For this reason, this paper can provide a description of the rubber economy in supporting the national economy. The data used is secondary data including national and global data, especially for countries of ITRC forum group members. The analytical method usesPrincipal Component Analysiswhich is expected to provide an overview of the conditions for the development of the national rubber economy. The results showed that 55.34 percent indicated that the economic development of rubber was already export-oriented, while 8.56 percent indicated that global production would affect the decline in rubber area, while 13.70 percent of the global relative price had its own characteristics. Thus, it can be seen that the challenges ahead, need to anticipate the development of rubber cultivation, both in monoculture and agroforestry plantations, which can support each other with an interconnected agribusiness system for harmony with global demand.

Highlights

Rubber is needed as an industrial raw material and has a wide market in international trade
The purpose of this paper is to provide a description of the rubber economy from the perspective of international trade by (1) Identifying and classifying the factors that affect the Indonesian rubber economy (2) Indonesian rubber development through agroforestry
The stages in the Principal Component Analysis (PCA) analysis began with the collection of data on the initial variables related to the rubber economy

Summary

Introduction

Rubber is needed as an industrial raw material and has a wide market in international trade. Indonesia's dry rubber production until 2019 was 3.33 million tons [1] and put Indonesia as the second largest rubber producing country after Thailand. Indonesia controls nearly 26 percent of the world's total rubber production. Rubber is a leading commodity in the non-oil and gas sector, the second largest contributor to foreign exchange after palm oil (CPO). Indonesia's natural rubber exports in 2017 grew 1.4 percent when compared to 2016 and recorded an export value of 5.1 billion USD [2]. Indonesia classifies rubber as an export commodity which is the backbone of the national economy

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