Good News From North Sumatra, Rubber Export Value Increases 63.83 Percent In The First Quarter

Rubber tapping/Between

JAKARTA - The export value of rubber and rubber goods from North Sumatra in the January-April period or the first quarter of 2021 rose 63.83 percent compared to the same period in 2020.

"The value of exports of rubber and rubber goods from North Sumatra in the first quarter of 2021 rose 63.83 percent from the same period in 2020 or to $577.287 million", said Head of the Central Statistics Agency (BPS) of North Sumatra, Syech Suhaimi, in Medan, as reported by Antara, Saturday, June 5th.

In the first quarter of 2020, the export value of rubber and rubber goods from North Sumatra was still $ 352.378 million.

BPS noted that the increase in the export value of rubber and rubber goods was driven by an increase in the volume and selling price of these commodities.

The export value of rubber and rubber goods from North Sumatra is $577.287 million. That contributes 16.11 percent to North Sumatra's total exports.

"Rubber and rubber products always occupy the second position after animal/vegetable fats and oils in the largest contributor to North Sumatra's export value every year", he also said.

Executive Secretary of the Association of Indonesian Rubber Companies (Gapkindo) of North Sumatra, Edy Irwansyah, said that rubber prices rose due to tight supply.

Supply is tight, due to a weaker trend in production due to La Nina which is only expected to end at the end of June 2021. Including the impact of actions by overseas buyers asking for delays/rescheduling of deliveries.

The rescheduling request is alleged because freight forwarding services companies have limited availability of containers, due to a large number of exports including delayed shipments at the beginning of the COVID-19 pandemic and the ongoing closure of the flow of goods entering and leaving between countries.

North Sumatra's rubber export volume in April 2021, for example, decreased by 10.3 percent to 31,555 tons compared to March which was recorded at 35,190 tons.