Indonesia's Rubber Research Articles

DYNAMIC SIMULATION OF RUBBER PRODUCTION SYSTEMS USING SSM AND VENSIM APPROACHES

One of the contributors to the agricultural sector, particularly in the plantation sub-sector, is the rubber industry, which accounts for 38.54% of Indonesia's rubber exports. This opportunity arises from the fact that 85% of rubber producers are smallholder farmers, while the remaining share is owned by state and private enterprises. Makmurman is an individual rubber business owner based in South Sumatra Province, with a 4-hectare rubber plantation that directly sells raw rubber to collectors. The rapid advancement of technology in modern life has led to increased use of elastic materials, thereby driving higher demand for rubber, especially in the automotive industry. As a result, Makmurman has experienced a surge in demand for raw rubber from collectors. However, Makmurman has been unable to meet this demand, likely due to the many variables involved in the production process and the sale of raw rubber, which have created challenges. To address these issues, a root cause analysis is conducted to identify the appropriate solution using the soft system methodology approach. Additionally, data processing is carried out using Vensim software to model the rubber production system in a real-world scenario. The results include the development of causal loop diagrams and stock flow diagrams. The expected outcome is a dynamic system simulation with various scenarios, ultimately identifying the best scenario that ensures the highest availability of rubber for Makmurman to meet the demands of the rubber collectors.

Increased Competitiveness of Indonesia's Rubber Rubber Exports After The Enactment of ACFTA (Asean-China Free Trade Agreement)

The ASEAN-China Free Trade Agreement (ACFTA), which came into effect in January 2010, aims to increase economic cooperation and remove trade barriers. However, the value of Indonesia's rubber exports decreased significantly after the implementation of this agreement. This study uses the gravity model and Revealed Trade Advantage (RCTA) method to analyze the factors affecting the decline in the value of Indonesia's rubber exports. The data used covers the period 2001-2022 and is taken from various sources including TradeMap and interviews with rubber exporters. Findings show that the value of Indonesia's rubber exports to China and ASEAN countries has fluctuated, with a significant decline after 2011. Gravity model analysis shows that ASEAN-China real GDP growth is negatively related to the value of Indonesian rubber exports, while other factors such as exchange rates and commodity prices also play a role. The decline in Indonesia's rubber export competitiveness is not only caused by the implementation of ACFTA, but also by internal factors such as low productivity and underinvestment. Recommendations are given for commodity price adjustments to improve Indonesia's rubber export competitiveness.

Trend TSR 20 rubber prices between producing countries in Southeast Asia

Natural Rubber is one of the world's largest commodities used for industrial needs. The price of TSR 20 rubber continues to fluctuate, which has a significant impact on some farmers in various countries. This study analyzes the price trend of TSR 20 rubber in Southeast Asia. The purpose of this study is to analyze trends and fluctuations in STR 20 rubber prices in Southeast Asia, such as Standar Thailand Rubber (STR 20), Standar Indonesia Rubber (SIR 20), Standar Vietnam Rubber (SVR 20), and Standar Malaysia Rubber (SMR 20) for 72 months from January 2017 - December 2022. This research uses trend analysis with simple linear regression method. This research uses the historical method by conducting research on a source which is then critically analyzed. Data collection techniques are obtained by tracing data and documents that have been stored by agencies including the Ministry of Agriculture, Ministry of Trade, International Rubber Study Group (IRSG), Singapore Commodity Exchange (SICOM), Association of Natural Rubber Producing Countries (ANRPC), Food and Agriculture Organization (FAO), The World Bank, and Gapkindo as well as existing literature and sites. The results obtained are positive trends where each development between countries has experienced a positive price increase, such as, STR 20 has a polynomial line equation Y = 0.0331x2 – 95,28x + 68596, then SIR 20 Y = 0.0231x2 -66,443 + 47966, SVR 20 Y = 0,0301x2 – 86,824x+ 62648, and SMR 20 Y = 0,0279x2 – 80,411x + 58010.

Indonesia's Rubber Exports to the United States

Rubber is one of Indonesia's leading plantation commodities exported to various countries, one of Indonesia's natural rubber market destinations is the United States. Based on data from the trade map, the export value of Indonesian natural rubber in the US market is in first place with an average value of 1,158,164 USD. The purpose of this study is to analyze the trend of Indonesian rubber exports to the United States and to analyze the competitiveness of Indonesian rubber in the United States. The data used is secondary data from 2013-2022. The analysis method used is trend analysis to determine the trend of export development and Revealed Comparative Advantage (RCA) analysis to analyze competitiveness. The results showed that the trend of Indonesia's natural rubber export volume decreased every year. RCA shows an average value of 67.856 which means that Indonesian natural rubber has a comparative advantage and strong competitiveness in the American market.

Towards a sustainable business model for rubber agroforestry in Indonesia

Agroforestry systems, particularly rubber agroforests, are crucial for Dayak communities in Indonesia, providing economic benefits and vital assets for their livelihoods. Two common types in Simpang Dua sub-district are tembawang (traditional fruit gardens) and rubber agroforests. Both have flourished for generations but they now face threats of conversion due to declining rubber prices and the oil palm boom. Tembawang is considered more resilient due to better protection of tenure rights under local customary law and its greater provision of socioeconomic benefits. In some instances, rubber agroforests are only maintained because of their deep rooted social and cultural importance, but they have potential to still be economically valuable. Rubber agroforests can provide a diversified income, offering resilience against volatile rubber markets, and although oil palm provides higher income in the short term, rubber agroforests can provide higher income over the entire system cycle. Long-term financing is essential to improve yields and product quality, to support smallholder rubber agroforests, but obtaining this type of financing is difficult. Obstacles include low rubber prices, poor-quality latex, a lack of productivity of agroforestry crops and low attention from investors, financiers, and markets. Non-commercial financial support, including technical support, could help strengthen farming practices and market-based instruments, including carbon payments, could help stabilise farmers' income. The expansion, however, of large-scale oil palm plantations has shifted the rural labour force from rubber smallholders to plantation workers. Efforts to address these challenges include the establishment of a rubber processing and collective marketing unit, UPPB, to improve market access and prices for smallholder farmers. Founded in 2022, the unit aims to arrange collective marketing and provide technical capacity for farmers to meet the specifications of Standard Indonesia Rubber. By aggregating rubber slabs, farmers can earn up to 25% higher prices than individual farmers, but irregular supplies from farmers and low prices are affecting their success. Despite facing challenges, local farmers' groups remain resilient in organising themselves to improve their systems with the support of NGOs. Commitment from government and private sector stakeholders is additionally needed to further promote sustainable and inclusive rubber agroforestry businesses.

Determinan Ekspor Komoditas Karet Indonesia Ke Amerika Serikat Periode 1990-2022

Indonesia's rubber exports have always been dominated by the United States as the largest exporting country throughout the year. Recently, rubber exports to the United States have decreased along with the decline in rubber production in Indonesia. The purpose of the study was to analyze the influence of Indonesian rubber production variables, Indonesian rubber land area, Indonesian rupiah exchange rate against the United States dollar, Indonesian inflation rate, United States GDP on Indonesian rubber export variables to the United States. The type of data used is secondary data with time series data for the period 1990-2022. The analytical tool used in this study uses the Error Correction Model (ECM). The results of this study in the long-term and short-term relationship simultaneously showed that the rubber production variable, the variable area of Indonesian rubber land, the Indonesian rupiah exchange rate against the United States dollar, the Indonesian inflation rate, and the United States GDP had a significant effect on Indonesian rubber exports to the United States. Partially in the long term and short term relationship shows that the variable production of Indonesian rubber has a positive and significant effect on Indonesian rubber exports to the United States, while the variable area of Indonesian rubber land, the Indonesian rupiah exchange rate against the United States dollar, the Indonesian inflation rate, and the United States GDP is not significant to Indonesian rubber exports to the United States. Keywords: Export, Production, Land Area, Exchange Rate, Inflation, GDP.

Multivariate distributional stochastic frontier models

The primary objective of Stochastic Frontier (SF) Analysis is the deconvolution of the estimated composed error terms into noise and inefficiency. Thus, getting unbiased estimates of the composed error terms should be of uttermost importance. Assuming a parametric production function (e.g. Cobb-Douglas, Translog, etc.), homoscedastic noise and (in)efficiency are restrictions, which can counteract this objective. In order to overcome these three restrictions, the SF model can be cast into the framework of distributional regression models. Within this model class, all parameters of the output (or cost) distribution can be modelled as functions of covariates via smoothers. Consequently, non-linear, random and spatial effects can be included with ease. The Distributional Stochastic Frontier Model (DSFM) is introduced. Furthermore, the model is extended to allow for the production of several outputs, which may be dependent. The multivariate distribution of the outputs (or costs) is modeled utilizing copulas. The serviceability of the approach is demonstrated via a Monte Carlo simulation. Additionally, the applicability of the proposed method is showcased by estimating the production of palm oil and rubber in Indonesia.

Pengaruh Produksi, PDB, dan Nilai Tukar terhadap Ekspor Karet Indonesia ke Korea Selatan

This study analyzes the effect of rubber production, GDP, and the exchange rate on Indonesia's exports to South Korea. The data used is secondary data in the form of time series data from 2002 to 2018. The data comes from Gapkindo, the Central Bureau of Statistics, and Bank Indonesia. Data were analyzed using multiple regression models. The analysis found that during the period 2002 to 2018, the average growth in rubber export volume was 9.2% per year, production was 5.4% per year, South Korea's GDP was 3.0% per year, and the exchange rate was 2.5% per year. South Korea's GDP significantly affects Indonesia's rubber exports to South Korea, while rubber production and the exchange rate have no significant effect.

Partnership Impact on Production and Income of Indonesia Rubber Farmers

In Indonesia, many rubber farmers carry out partnership-based cooperation. Obviously, this activity gives benefits and impact for both parties. Regarding this idea, this research aimed to determine a partnership pattern found in rubber farmers, partnership impact on the production of rubber farmers in Indonesia, and partnership impact on rubber farmers’ income in Indonesia. The study used descriptive and analytical methods. Meanwhile, to determine the problems related to the partnership impact on production and income, the researchers used an independent t-test. However, owing to abnormalities in the test, this study used the Wilcoxon signed-rank test. The result showed that the partnership pattern of rubber farmers in Indonesia was the KOA pattern. In terms of partnership impact on production, there was no significant difference between the production of non-partnered and partnered rubber farmers. Meanwhile, the income measure had a small difference between the two respondent farmers. Following this, rubber farmers should make partnerships due to high profits compared to non-partnership farmers. The bargaining power of farmers is better when they are in a cooperative system, so the price offered is better. This also makes the government’s program successful related to the partnership recommendation by farmers.

Akurasi Algoritma Fletcher-Reeves untuk Prediksi Ekspor Karet Remah Berdasarkan Negara Tujuan Utama

Crumb rubber is a natural rubber specially designed to ensure its technical quality. Rubber is produced mainly in Southeast Asia, where Indonesia is the second largest producer in the world after Thailand. This study aims to predict the export of powdered rubber in Indonesia. The prediction method used is FletcherReeves which is one of the artificial neural network methods commonly used to predict data. The research data used is crumb rubber export data by main destination country for the period 2012-2020 which was obtained from the website of the Indonesian Central Statistics Agency. Based on this data, network architecture models will be trained and defined, including 7-10-1, 7-15-1, 7-20-1, 7-25-1, 7-30-1 (trancgf). Of the five models, after training and testing, the best data architecture model is 7-15-1 (trancegf) 7 is the input layer, 15 is the number of neurons in the hidden layer and 1 is the exit layer. The level of accuracy of the architectural model with the MSE value is 0.00482054.

Exposure to Ammonia Concentration from the Processing of Crumb Rubber on Environmental Quality: A Review

Nowadays, processed natural rubber products such as crumb rubber have become the demands of global consumers who are oriented towards export markets. Therefore, the economic impact is felt more, but there are still other consequences. The consequences are not only economically beneficial but can also be detrimental to environmental conditions. The process of making natural rubber into crumb rubber causes a negative impact by means of air pollution in the form of odour, which is rarely noticed. The purposes of this study were to analyse the ammonia concentration resulting from the processing of natural rubber into crumb rubber, and to identify the impact of ammonia contamination on the environment, particularly human health. This research was conducted using a review method with the help of colandr machine learning. The results of the review show that the concentration of ammonia produced from the processing of natural rubber into crumb rubber in Indonesia has passed the specified quality standard threshold. It is found to impact the environment such as damage to aquatic ecosystems and air quality, as well as effects on human health such as respiratory problems.

Competitiveness of The Top 15 Main Export Destinations of Indonesia's Natural Rubber for 1991–2020

This study aims to analyze the position and performance of Indonesia's natural rubber exports in terms of the concept of comparative advantage in the market world. The data used in this study were sourced from UN Comtrade, which is processed with a 30-year data series (1991-2020) and is categorized into six periods. The analytical methods used are Structural Trend Ranking (STR), Revealed Comparative Advantage (RCA), Export Product Dynamic (EPD), and X-Model. The results showed that 15 countries have consistently been the main Indonesian natural rubber market for 30 years. The RCA analysis showed that Indonesian natural rubber had strong competitiveness in all destination countries, except India in the first period. In contrast, the EPD analysis found that Indonesia's rubber market position was not always static and competitive. There was shown in the period 2011-2015, the average position of Indonesia's natural rubber market is in a market position that is not wanted to

Impact of Corruption Index to Indonesian Rubber (Hs-4001) Export

This study aims to see the impact of the corruption index which is suspected to be a barrier to Indonesia's rubber exports (HS-4001) to 30 major importing countries during the period 2010 - 2019. The type of data in this study is secondary data in the form of panel data with an estimated fixed effect model (FEM). to see the effect of the independent variables CPIS, ECONS, POPS and FDI on the dependent variable Indonesian rubber exports (HS-4001). The estimation results in this study indicate that the corruption index has no effect on fluctuations in Indonesia's rubber exports (HS-4001) which is caused by the long expiration of rubber products (HS-4001), while the variables of economies of scale and population of scale have a positive effect with different percentages. (2.7% and 49.14%) to Indonesia's rubber exports (HS-4001), for the FDI variable itself has a negative effect on Indonesia's rubber exports (HS-4001) with a percentage of -0.4%.

Analysis of Export Competitiveness of Natural Rubber from Indonesia and Thailand in the International Market

Natural rubber is one of the commodities that plays an important role as a foreign exchange earner. This study aims to determine how the competitiveness of natural rubber in Indonesia and Thailand as the main producers in the world market. The data used in this study is the volume of exports and imports of natural rubber in Indonesia and Thailand for 15 years in the 2004-2018 period. This research uses Revealed Comparative Advantage (RCA) analysis to analyze comparative advantage and Trade Specialization Index (ISP) to analyze competitive advantage. The RCA analysis results in world markets, the United States market and the Chinese market show a number of more than 1 which means that natural rubber in Indonesia and Thailand have strong competitiveness or comparative advantage. However, in the world market and the United States market the value of the Indonesian natural rubber RCA index is higher than the Thai RCA index value so that the competitiveness of Indonesia's natural rubber is stronger than Thailand, while in the Chinese market the value of the Thai RCA index is the opposite. Indonesia and Thailand ISP Index values show positive results, indicate that these two countries have a tendency to be an exporter of natural rubber commodity in the world market, the American market, and the Chinese market.

The Rubber Industry of Indonesia: Strategy for Competitiveness and Sustainability

The paper presents a systematic review of the latest developments in the natural rubber industry and describes the major predictors for the sustainability of Indonesia’s competitive advantage in this sector. In-depth interviews with experts were conducted to gather data from the private and public industries, International Trade Statistic, and Statistics Indonesia. The data were analyzed using the Diamond Model, which is widely used as the framework of a country’s competitive advantage. The data is processed to find the RCA value and mapping the factors affecting the competitive advantages of ITRC countries. In the face of falling rubber prices, the Indonesia rubber industry's recent management strategy is to increase competitiveness sustainably by increasing productivity in the upstream industry and efficiency in the downstream industry. To boost competitiveness even further, a more concentrated endeavor to stimulate innovation and technology adoption by farmers and businesses is required. The study offers a comprehensive examination of Indonesia as a country with major agricultural export industries. It methodically investigates the strategies that must be implemented to sustain the rubber industry in Indonesia. Keywords: competitiveness, industry, natural rubber, revealed competitive advantage, sustainability DOI: 10.7176/EJBM/14-3-06 Publication date: February 28 th 2022

The Utilization of Juice Morinda citrifolia and Averrhoa bilimbi as a Latex Emulsifier Agent

The area of rubber land in Indonesia currently reaches 3,672,213 ha which can produce 3,229,861 tons/year. The price of rubber in Indonesia is currently cheap because of low-quality latex. The low quality of latex is caused by the large production costs, one of which is the price of latex clotting material which is relatively expensive. Therefore, this studied aims to find a good alternative to latex coagulant but at low cost. Latex clumping material used in this research were noni juice and star fruit. The treatment in this study used noni juice and star fruit juice concentration of 5 ml, 10 ml, 15 ml, and 20 ml, respectively. The results showed the weight of latex with noni emulsifying agents increased by 45.58% while the administration of star fruit juice was not much different, amounting to 45.70%. However, the final weight of latex given by the emulsifying agent in the form of star fruit was higher than Noni with the difference at the highest weight reached 4.23 grams. The fastest latex clumping time at 20 ml star fruit concentration is 1.18 minutes. Based on research results noni juice and star fruit potential as a latex clot.

Analysis of Affecting Factors on the Natural Rubber Exports Volume in North Sumatera

North Sumatra is the second largest natural rubber producing province in Indonesia so it has a considerable influence on Indonesia's rubber export activities, however, the export volume of rubber from North Sumatra has fluctuated. The aims of this research were to analyze the factors that influence the volume of natural rubber exports in North Sumatra. The analytical method used is quantitative analysis method in the form of robust regression analysis. The data used in this study are time series data from 1989-2018 using annual data. The results showed that North Sumatra's natural rubber production, natural rubber export price, exchange rate, and inflation simultaneously had a significant and significant effect on the export volume of North Sumatra's natural rubber. North Sumatra natural rubber production, natural rubber export prices, and the exchange rate partially have a real and significant effect on the export volume of natural rubber in North Sumatra, while inflation does not partially affect the export volume of North Sumatra natural rubber.

Diamond Model and Competition of Rubber Export Markets: Evidence from Sumatra Economic Growth Center

The focus of this research is on how the position of competitiveness of Indonesian rubber exports among ASEAN countries and the dominant factors causing the competitiveness of Indonesian rubber exports experienced a downward. Approach to measuring rubber export competitiveness uses the Lafay Index, and factors that affect the competitiveness using the Diamond model by using panel data analysis method. The results show that there has been a decline in the competitiveness of Indonesia's rubber exports to ASEAN countries, the greatest decline in competitiveness that occurred in Singapore, Malaysia, and Thailand. Factors that affect Indonesia's export competitiveness that is more dominant are a foreign direct investment, price levels, and interest rates. FDI should be directed at improving the quality of export products following the quality of ISNR and upgrading the quality of rubber export products from SIT 20, and directly more beneficial for the manufacture of goods for final consumers.

PENGARUH GDP DAN NILAI TUKAR NEGARA MITRA DAGANG TERHADAP EKSPOR KARET INDONESIA

International trade is one of the economic activities that plays an important role for a country. The benefits of international trade are related to economic growth, national development and national welfare. The condition of limited resources is no longer a barrier to meeting the needs of a country with exchange and trade. Rubber is one of the leading export commodities for the Indonesian plantation sector. Indonesia is one of the main producers of natural rubber number two in the world after Thailand. The purpose of this study was to determine the effect of Gross Domestic Product and the exchange rate of trading partner countries on Indonesian Rubber exports. The type of data used is panel data of Indonesia Rubber export partner countries in 2009-2018. The method used is panel data regression. The results showed that the export of Indonesian Rubber with Gross Domestic Product was positive and significant. And the exchange rate also has a positive and significant effect

Development of Rubberized Asphalt Technology Based on Asphalt Cement (AC Pen 60) and Fresh Natural Rubber in Indonesia

AbstractTechnology of rubberized asphalt is significantly increased for the last five years among three highest natural rubber producing countries. Fresh natural rubber which is used as asphalt cement additive, consists of pre‐vulcanized natural rubber latex (NRL), solid rubber compound, and master‐batch. Selection of fresh natural rubber types are strongly influenced by process‐ability, while dosage of fresh natural rubber determine rubberized asphalt properties. Mixing of pre‐vulcanized NRL with hot melted asphalt is run at stirred mixer, while addition of solid rubber compound and master‐batch into asphalt is conducted by using high shear mixer at 150 °C. Observation during rubberized asphalt production shows that mixing of solid rubber based asphalt additive was longer (12 h) than pre‐vulcanized NRL (4 h). Longer mixing time due to solid rubber tend to swell in the hot melted asphalt since there is polarity difference between rubber particles and asphalt. Analysis of rubberized asphalt physical property shows that pre‐vulcanized NRL produces highest elastic recovery value (40–70%) compared to rubberized asphalt based on solid rubber (25.8%). High elastic recovery indicates better resistance of rubberized asphalt against high traffic load and harsh environment. It can be concluded that during field trial test, usage of pre‐vulcanized NRL is more beneficial.