Abstract
During 2009-2012 the price of rubber increased sharply, on the contrary during 2012-2018 the price decreased, and the farm price level in 2018 was lower than the average in 2009. The decline in rubber prices had an impact on the income of rubber farming. This study aims to analyze the changes in rubber prices on the performance of rubber farming and rubber farmers’ incomes The main data used is the ICASEPS’ Patanas database for 2009, 2012, and 2018. This study took cases in small-holder farmer in Penerokan Village (Batang Hari Regency, Jambi) and Semoncol Village (Sanggau Regency, West Kalimantan). Data analysis using R/C ratio. The results showed that the average price of rubber during 2009-2012 increased from IDR7,961/kg to IDR12,968/kg or increased by 62.9%, but in 2018 its decreased by an average of 45% to IDR6,875/kg and tended to decrease. Revenue from rubber farming during 2009, 2012 and 2019 in Penerokan was IDR12,974,000 respectively; IDR10,843,000 and IDR7,878,000 with an R/C ratio of 1.67; 1.87 and 1.67. Revenue from rubber farming in Semoncol 2009, 2012 and 2019 was IDR 10,656,000 respectively; IDR15,990,000 and IDR10,950,000 with an R/C ratio of 1.50; 2.00 and 1.29. The R/C ratio of rubber farming in both villages is more than 1, indicating that rubber farming is economically feasible. Household income in both locations still dominated by agricultural activities.
Highlights
Rubber has an important role in the Indonesian economy
The increase in land tenure in sample villages in the period 2009-2012 was caused by the activities of clearing new plantations from forest lands that originally had not been cultivated, purchases land from other farmers, and converts rice fields and moorlands into rubber plantations [8]
The increase in land for rubber plantations was triggered by the increase in the price of natural rubber on the world market which had a major impact on the interest of farmers in cultivating rubber plants
Summary
Rubber has an important role in the Indonesian economy. It is one of Indonesia's large export commodities as a source of foreign exchange besides oil and gas. The total export value of Indonesian natural rubber was USD3,527,202 in 2019 [1] making Indonesia the world's second-largest rubber country. World rubber prices fluctuated during 2007-2018 (Figure 1). The price started to increase in 2009 and peaked in 2011 and the price decreased until now. The increase in rubber price occurred due to a gap between the limited supply of natural rubber and an increase in demand [2]. The declining price after 2011 was due to increased production from rubberproducing countries causing oversupply in the world market [3]
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