OTHERS
| Indonesia seeks greater ties in rubber industry Mon, 13 Aug 2012 00:36:00 +0530 |
| Business Standard Economy Policy News Indonesia, the second largest rubber producer in the world, has invited the Indian rubber industry to invest in Indonesia and benefit from ample NR resources. In a meeting with the apex rubber industry body, All India Rubber Industries Association (AIRIA), Dickey Fabrian, Counsel General of the Republic of Indonesia in India, said they wanted to increase bilateral trade in rubber goods. He invited the Indian industry to start their rubber manufacturing units as they had abundant natural rubber, inexpensive labour, power and friendly government policies. Indonesia has also invited investment in rubber plantation through lease of land. Niraj Thakkar, senior vice president of AIRA and convener of upcoming India Rubber Expo, said a high-level Indonesian delegation was likely to participate in the expo to be held in Mumbai in January next year to further strengthen the ties between rubber goods manufacturers of the two countries. Stating that it was a win-win situation for both the countries, he said India had gained immense expertise in production of rubber components and other rubber/latex products. The growth was limited only by the paucity of raw materials, particularly natural rubber. On the other hand, Indonesia had a vibrant NR sector and would wish to develop manufacturing of rubber products. As such several automotive tyre and rubber goods manufacturing units are looking at Asean countries to take advantage of the free trade regime. Thailand, the world’s largest producer of NR, produced 3.5 million tones in 2011, Indonesia 3 million and Malaysian 996,000 tonne. India cane fourth with around 900,000 tonne production. Association with Indonesia will primarily help Indian manufacturers as the global NR price is lower — by around Rs 13 a kg on an average for the last few weeks. |
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