Below is a list with tagged columns and company profiles.

Today's Headlines Rubber

  • Rubber Production Indonesia Expected to Fall in 2016 on Haze & El Nino

    Rubber Production Indonesia Expected to Fall in 2016 on Haze & El Nino

    Indonesia, the world's second-largest natural rubber producer, is expected to see slowing rubber output in 2016 on the back of the El Nino weather phenomenon as well as haze caused by forest fires on Sumatra and Kalimantan. Although the production decline may support rubber prices in the middle-long term, Indonesian rubber farmers are currently still plagued by rubber prices that have fallen to six-year lows due to reduced rubber demand from China, the world's largest rubber importer.

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  • Southeast Asia’s Agricultural Commodity Producers Brace for El Nino

    In the past couple of weeks unusually dry weather in several parts of Southeast Asia has led to expectation that harvests of agricultural commodities in the region will be disappointing. More and more weather forecasters are convinced that the El Nino weather phenomenon (i.e. periodical warm ocean water temperatures off the western coast of South America that can cause climatic changes across the Pacific Ocean) is to return this year causing droughts in the key agricultural-producing countries.

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  • Indonesia Investments' Newsletter of 26 April 2015 Released

    On 26 April 2015, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic matters such as updates on Indonesia’s telecommunications, cement and rubber industries, the performance of the rupiah, the 24th World Economic Forum on East Asia, mutual fund management, and more.

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  • Natural Rubber in Indonesia Update: Export & Production

    Natural Rubber in Indonesia Update: Export & Production

    Indonesia’s export of natural rubber is forecast to reach 2.58 million tons in 2015, roughly similar to this year’s expected export performance but a 10 percent decline from the country’s rubber export in 2013. This year, local rubber companies have been negatively affected by sluggish global demand triggering international rubber prices touching three-year lows. Rubber production in Indonesia in 2014 is expected to reach 3.5 million tons, of which 90 percent is exported abroad (mostly to the USA, Japan, China, India and Brazil).

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  • Amid Sluggish Global Economy Value of Indonesian Exports Revised Down

    With China’s economic growth slowing to 7.3 percent year-on-year (y/y) in the third quarter of 2014, Indonesian exports will be affected as China is one of Indonesia’s most important trading partners. Prior to the release of China’s Q3-2014 GDP growth result, the outgoing government of Indonesia had already trimmed its export target for 2014 as global commodity prices have still not picked up. In fact prices of palm oil, coal, rubber, copper and iron ore have fallen in the first three quarters of 2014 according to Indonesian government data.

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  • Furniture, Rubber & Garment Trade between Indonesia & USA Expands

    Indonesian Trade Deputy Minister Bayu Krisnamurthi announced that Indonesian furniture, rubber and garment businesses have secured trade contracts worth USD $11.3 million with their counterparts in the USA and Canada. Most of these contracts (roughly USD 10.3 million) were sealed by US importers. Krisnamurthi stated that these deals show that international businesses have trust in Indonesian products. Moreover, the deals will have a positive impact on Indonesia’s troubled trade balance.

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  • Profile of an Indonesian Agribusiness Player: PP London Sumatra Indonesia

    Indonesia Investments has updated the company profile of plantation firm PP London Sumatra Indonesia (or Lonsum). This Indonesian plantation company, controlled by the Salim Group, focuses on the production of palm oil, rubber, tea and cocoa on its estates on Sumatra, Java, Kalimantan and Sulawesi (covering more than 110,000 hectares in total). Although the global palm oil seed and rubber trade is expected to remain sluggish in 2014, increased sales (and global price) of crude palm oil (CPO) will impact positively on the company’s financial results.

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  • Indonesia Investments' Newsletter of 29 June 2014 Released

    On 29 June 2014, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website in the last seven days. Most of the topics involve economic topics such as business confidence, the looming middle income trap, a forecast for inflation and the trade balance, the updated company profile of Indosat, a new IPO, news surrounding the presidential election, and more.

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  • Company Profile Sampoerna Agro and Overview Indonesian Palm Oil Sector

    Indonesia Investments has updated the company profile of Sampoerna Agro in the Indonesian Companies section. Sampoerna Agro, part of the Sampoerna Strategic Group, is one of the country’s leading producers of palm oil and palm kernel. It further produces rubber and sago. It operates a total of 120,225 hectares of oil palm estates, 2,810 hectares of rubber estates and 10,351 hectares of sago estates, mostly located on the islands of Sumatra and Kalimantan, and owns six palm oil mills.

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  • Rubber Output in Indonesia May Fall 3% if the New El Nino Cycle Kicks in

    Ahead of the World Rubber Summit 2014 (held between 19 and 21 May in Singapore), Asril Sutan Amir, adviser to the Indonesian Rubber Association (GAPKINDO), said that Indonesian rubber output may decline by three percent or 100,000 metric tons (Mt) to 3 million Mt in 2014 due to the impact of this year's possible new El Nino cycle. An extended dry season will lead to damaged rubber trees and thus less production. Indonesia is currently the world's second-largest rubber producer after Thailand.

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Latest Columns Rubber

  • Rubber Industry Indonesia: Challenges and Opportunities

    Rubber Industry Indonesia: Challenges and Opportunities

    In late 2014 Indonesian rubber producers and exporters were not amused when the government of China decided to approve a new standard for compound rubber imports. The permitted crude rubber content in imported compound rubber was cut from 95-99.5 percent to 88 percent, meaning that compound rubber imports into China became subject to a 20 percent import duty (the same tariff as natural rubber import duties). China’s new policy is a blow to its rubber suppliers, which include Indonesia, Thailand, Malaysia, and Vietnam.

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  • Rubber Update: Indonesia, Thailand & Malaysia Make New Policies

    Rubber Update: Indonesia, Thailand & Malaysia Make New Policies

    Thailand, Indonesia and Malaysia, the world’s three largest rubber producing countries (accounting for about 70 percent of total global natural rubber output), have agreed to avoid excessive natural rubber supply on the international market by limiting their rubber exports. The countries also agree to curb new rubber plantation development as well as to spur domestic rubber consumption in each country. This statement was read out by Douglas Uggah Embas, Plantation Industries Minister of Malaysia, in Kuala Lumpur today (20/11).

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  • Rubber Industry in Indonesia: Halcyon Agri Corp Enhances Position

    Rubber Industry in Indonesia: Halcyon Agri Corp Enhances Position

    Singapore-based rubber producer Halcyon Agri Corporation Limited (HAC) will become the second-largest producer and exporter of Indonesian natural rubber after it announced to buy nine Indonesian rubber processing plants (involving USD $360 million worth of investments). HAC is an integrated producer as well as merchandiser of standard Indonesian rubber and standard Malaysian rubber, which are the most widely used grades of natural rubber in vehicle tyres manufacturing.

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  • Trade Deficit of Indonesia in 2014 Expected to Remain USD $4 Billion

    Statistics Indonesia (BPS), a non-departmental government institute, expects that Indonesia's trade balance will post a deficit of around USD $4 billion in 2014. The key question is whether increased manufacturing and agricultural exports can replace reduced raw mineral exports. The forecast of BPS is approximately similar to the country's trade deficit in 2013. Last year, Southeast Asia's largest economy recorded a deficit of USD $4.06 billion as the total value of exports amounted to USD $182.57 billion, while imports reached USD $186.63 billion.

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  • Indonesian Crude Palm Oil Exports Surge 29% in June 2013

    Indonesian exports of crude palm oil (CPO) in June 2013 grew about 29 percent to 1.62 million ton compared to the same month last year. Although production of CPO in Indonesia slowed down in June, higher demand for Indonesia's CPO is met because there are still sufficient amounts of stockpiles. A high official at the Indonesian Palm Oil Association (Gapki) said that stockpiles in 2012 grew to 5 million tons as global demand for the commodity weakened sharply amid international economic turmoil.

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  • Indonesia's Crude Palm Oil Sector; CPO Price Expected to Rebound

    Palm Oil Price and Export Indonesia Investments

    The price of crude palm oil (CPO), which has been under downward pressure for a long time as global turmoil lingers on, started to rebound due to falling stockpiles in Indonesia and Malaysia. Reserves of the commodity fell because of weather conditions and because of an increase in demand ahead of the Islamic fasting month (Ramadhan). The price of crude palm oil is expected to hit the USD $900 per ton mark in late 2013, up from USD $828-865 per ton in May and June. This price recovery is expected to continue.

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  • Indonesia Intends to Increase Trade with Several European Countries

    Indonesia already is a strong trade partner to a number of countries in Europe. Based on data released by Indonesia's Ministry of Trade, the Netherlands and Spain are two European countries that import a considerable amount of Indonesian products and thus are important contributors to Indonesia's trade surplus in the non oil & gas sector. But other European nations, such as Germany and Russia, pressure Indonesia's trade surplus. It indicates that, despite the wide distance, Indonesia and Europe have a close and valuable trade relationship.

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  • Indonesia's Trade Balance Reports Another Trade Deficit in April

    Indonesia's trade balance recorded another deficit in April 2013 as imports (USD $16.31 billion) exceeded exports (USD $14.70 billion). April's trade deficit, amounting to USD $1.62 billion, was mainly due to continued weak commodity exports in combination with strong oil, basic machinery and utensils imports. After five consecutive months of deficits up to February, Indonesia’s trade account reported a surplus of USD $330 million in March, but fell back into deficit in April. From January to April, Indonesia's trade deficit stands at USD $1.85 billion.

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  • Palm Oil Giant Astra Agro Lestari Distributes USD $111 Million in Dividends

    Shareholders of Astra Agro Lestari, Indonesia's largest agribusiness company by value (which is particularly engaged in palm oil and rubber plantations), agreed to distribute IDR 1.08 trillion (USD $111 million) in dividends to its shareholders. The allocated amount is equivalent to about 45 percent of the company's net profit in 2012. Dividend per share is set at IDR 685 (USD $0.071). Last November, the company had already paid interim dividend of IDR 230 per share. Final dividend will be paid on 3 June 2013.

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