Indonesia to replant 1mn hectares rubber plantation

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Photo by ICDX

JAKARTA (TheInsiderStories) -The Ministry of Agriculture set to replant 1 million hectares of rubber plantations to jack up prices and to increase the productivity of the industry. Gamal Nasir, the ministry’s director general of plantation told Tempo, the program will be done gradually starting this year.

He said the ministry is currently collecting data and information on which areas the program will use for the projects. For the replanting, Gamal continued, the government has prepared Rp10 trillion (US$749.48 million) to be disbursed directly to farmers through the People’s Business Credit (KUR).

Assuming that Indonesian rubber farmers on average have 2 hectares of land, some 500,000 farmers are expected to be able to obtain the loan.To prevent losses of income, Gamal said, the Agriculture Ministry will free corn seeds for the farmers to plant.

The collapse of rubber prices in global markets has greatly affected the life of rubber farmers in Indonesia. In farmers’ markets, rubber price was Rp25,000 per kilogram in 2012. Today, it has dropped to just Rp5,000 a kilogram.

 

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Source: The Insiderstories
Indonesia to replant 1mn hectares rubber plantation

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