A new paradigm for rubber farmers

Indonesia, the second largest rubber producer worldwide, with 3.6 million hectares of rubber trees, produces over 3 million tons of of rubber every year. The sector is dominated by 2.5 million smallholder farmers who account for over 80 per cent of national production.

Historical oversupply - in the absence of major downstream rubber processing within Indonesia has left most farmers reliant on low prices for coagulated 'cup lump" rubber.

Such poor earnings leaves most farmers close to poverty with little money available to spend on fertilisers and plantation improvements let alone some seedlings to replace ageing trees. So yields remain low and many seek second jobs or switch into other crops, dragging the rubber sector into further decline.