Foreign companies potentially Controls Indonesian rubber

Jumat, 14 Juni 2013 | 09:29

Foreign companies begin to look smallholder rubber plantations in Indonesia with massive investment by way of establishment of factories and land grabs.Chairman of the Indonesian Rubber Producers Association (Gapkindo), Daud Husni Bastari said the expasion of foreign companies on rubber sector increased. Large plantation companies from Malaysia, Thailand and also some Southeast Asian countries have invested in several regions in Indonesia, especially in Sumatra.

"Lately the foreign expansion of plantation firms that invest in the rubber sector is increasing. It must be controlled so that the commodity is not controlled by foreigners," he said when meeting with the House of Representative, Thursday (6/13).

The majority of foreign companies glanced rubber plantations in Sumatra. There are at least four companies from Malaysia and Thailand have invested in Sumatra.

However, Daud was reluctant to disclose the value of Investment. "I do not know how their investment, which they certainly have set up factories and already in production," he said.

He  explained the company from Thailand had already invested by building a processing plant in South Sumatra, Jambi and West Kalimantan. Meawhile the Malaysian company namely Maldex already invested by building a factory in Riau. (50/tw)

by M. Taufiqur Rahman