Updated Oct 17, 2022 21:39

Unvulcanised Rubber Market in Indonesia

Market Overview
The Indonesian unvulcanised rubber market expanded significantly to $ in , rising by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +% over the period from 2007 to ; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, the market attained the maximum level at $ in 2019; however, from to , consumption stood at a somewhat lower figure.

In value terms, unvulcanised rubber production totaled $ in estimated in export price. The total output value increased at an average annual rate of +% from 2007 to ; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2016 with an increase of % against the previous year. Unvulcanised rubber production peaked at $ in 2019; however, from to , production remained at a lower figure.


Consumption
In , approx. tons of unvulcanised rubber were consumed in Indonesia; growing by % compared with . In general, the total consumption indicated a modest increase from 2007 to : its volume increased at an average annual rate of +% over the last fifteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption increased by +% against indices. Over the period under review, consumption attained the peak volume at tons in 2019; however, from to , consumption stood at a somewhat lower figure.

The value of the unvulcanised rubber market in Indonesia stood at $ in , increasing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +% from 2007 to ; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Unvulcanised rubber consumption peaked at $ in 2019; however, from to , consumption failed to regain momentum.


Market Forecast
Driven by increasing demand for unvulcanised rubber in Indonesia, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of unvulcanised rubber in Indonesia were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for unvulcanised rubber.


Trade Balance
Indonesia remains a net exporter of unvulcanised rubber; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.