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Indonesia's Rubber Industry Analysis 2018

The report is available as single-site single-user license. The delivery time for the electronic version of the report is immediate. The delivery time for hard copies is approximately 3 business days.

Executive Summary

The rubber industry includes natural rubber which is obtained from the latex of various plants and synthetic rubber which is a man-made product made from petroleum. Asia accounts for 93% of the world natural rubber production with Thailand being the largest producer followed by Indonesia and Vietnam. Other large rubber producers in the region include India, China and Malaysia.

Boosted by the growing global levels of tire manufacturing, it is projected that the global rubber demand will rise by 3.9% per annum through 2019. The Asia Pacific region is expected to outpace the global demand, growing at 4.8% through 2019. The demand was projected to rise by 2% to reach 12.6 million tonnes in 2016 and by further 3.4% in 2017.

Indonesia is the second largest natural rubber producer globally. The country exports two key types of rubber exported out of Indonesia is natural rubber - produced from the latex of the rubber tree, and synthetic rubber - a mixture of natural rubber with substance such as petroleum. Sumatra is the key natural rubber producing area in Indonesia accounting for two-thirds of the rubber latex harvested followed by Kalimantan, Sulawesi and Java. 85% of the rubber producers are smallholders and they contribute 81% to the national output.

The industry is currently experiencing oversupply with demand having slowed down, particularly from China which is the largest buyer of rubber in the world. Indonesia was once the world's largest glove producer but currently the rubber manufacturer's base in the country has shrunk from 45 firms in 1989 to six firms. Indonesia produces approximately 51 million tyres per annum out of which 70% is exported primarily to the Middle East and North America. The regions Java and Sumatra are the largest contributors to the tyre market in the county. It is projected that the Indonesian tyre market will grow at a CAGR of approximately 13% during the period 2015-2020.

Our analysts believe that with adequate government support and infrastructural development the Indonesian rubber industry will spring back. Meanwhile, the consistently growing domestic auto sector of Indonesia is expected to help the rubber market to grow.

Why should the report be purchased?

The report ‘Indonesia's Rubber Industry Analysis 2018' highlights key dynamics of Indonesia's rubber sector. The potential of the sector has been investigated along with the key challenges. The current market scenario and future prospects of the sector has also been studied. The report contains profiles of key players including Bridgestone Corp, Michelin, Goodyear, Continental A.G., Sumitomo Rubber Industries Ltd. And PT Gajah Tunggal TBK. The report contains latest industry stakeholder's opinions.

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Indonesia's Rubber Industry Analysis 2018
Published By :Smart Research Insights
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