Abstract

World rubber demand increased continuously in line with the increase in global rubber industry needs for the countries like US, Japan, Europe, and China. The potential and opportunity should boost Indonesia's natural rubber exports, provide to increase the income of farmers that producing Material Rubber (Bokar), indirectly. However, the lack of reference prices of rubber smallholder at the national level, made of the farmers always disadvantaged, because the prices tend to be determined by the traders and manufacturers, and made weak the bargaining position of farmers, so the development of forward auction market into the potential and opportunities for Bokar’s sales that can benefit the farmers. The results showed that the forward auction market of Bokar has the potential and opportunities as a good place for transaction that more profitable for farmers. Through the forward auction market, the farmers were required to be willing and able to associated, produced good quality of Bokar, so that the Bokar’s value of sale was higher, because it sold by the association in a auction way.

Full Text
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